Helston leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher amount will be payable. Flat owners in Helston will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold properties in Helston with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Helston can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 procuring Helston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry owned a studio apartment in Helston being sold with a lease of a little over fifty eight years unexpired. Harry informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and secured satisfactory resolution informally and sell the property.
Mr and Mrs. R Bertrand owned a garden apartment in Helston in May 1997. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Helston with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 billed yearly. The lease ran out on 1 February 2098. Considering the 73 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
In 2012 we were approached by Mrs Abigail Díaz who, having owned a basement flat in Helston in February 2007. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable residencies in Helston with an extended lease were in the region of £240,600. The average amount of ground rent was £60 invoiced per annum. The lease termination date was in 2087. Given that there were 62 years as a residual term we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including costs.