Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Camelford. Clearly, the length of lease left shortens over time. This is often ignored and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Camelford have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please give careful deliberation before putting off your Camelford lease extension. Putting off that expense now simply increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Camelford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Adam was the the leasehold proprietor of a studio flat in Camelford being sold with a lease of a little over sixty years unexpired. Adam on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Adam to invoke his statutory right. Adam procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Dr Charlotte Moore moved into a studio flat in Camelford in July 2005. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable properties in Camelford with an extended lease were valued around £250,400. The mid-range ground rent payable was £65 collected annually. The lease expired in 2089. Given that there were 64 years unexpired we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus expenses.
Ms Morgan Cook owned a garden flat in Camelford in January 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Camelford with an extended lease were worth £184,000. The mid-range amount of ground rent was £55 billed per annum. The lease expired on 2 August 2078. Considering the 53 years left we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.