When it comes to residential leasehold property in Camelford, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Residents in Camelford with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has below eighty years left, under the relevant statute the landlord can calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Camelford can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Camelford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the landlord of her ground floor apartment in Camelford, Bethany started the lease extension process as the 80 year deadline was quickly coming. The lease extension was finalised in September 2015. The landlord’s costs were negotiated to a tad over 700 GBP.
Last Spring we were called by Dr R González , who took over the lease of a purpose-built apartment in Camelford in January 2004. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical flats in Camelford with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced annually. The lease ended in 2099. Having 73 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
In 2011 we were called by Mr and Mrs. S Roberts who, having acquired a garden apartment in Camelford in September 1998. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Identical properties in Camelford with an extended lease were valued about £240,600. The mid-range ground rent payable was £60 collected annually. The lease ran out on 24 November 2088. Considering the 62 years as a residual term we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including professional charges.