Camelford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Camelford residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Camelford you really ought to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Camelford flat owner with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Elijah owned a high value flat in Camelford being marketed with a lease of a few days over 61 years unexpired. Elijah informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2014 we were called by Mr and Mrs. E Bell who, having completed a studio flat in Camelford in June 2012. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Camelford with a long lease were worth £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease terminated on 12 February 2097. Taking into account 71 years left we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.
Mr J Simon completed a first floor flat in Camelford in May 2006. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical homes in Camelford with 100 year plus lease were valued around £225,800. The average ground rent payable was £60 invoiced yearly. The lease ran out on 17 April 2086. Considering the 60 years remaining we estimated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 not including professional charges.