As the the remaining lease term of a Helston residential lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Helston will meet the qualifying criteria; that being said a lawyer will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Helston 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 conveyancer we work with provide it.
Gabriel owned a high value apartment in Helston being sold with a lease of a little over 59 years unexpired. Gabriel informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Dr Kirsty Girard took over the lease of a purpose-built apartment in Helston in April 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Helston with an extended lease were in the region of £171,800. The average ground rent payable was £55 invoiced monthly. The lease elapsed in 2076. Taking into account 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of expenses.
In 2013 we were phoned by Mr and Mrs. W Walker who, having owned a studio flat in Helston in October 2002. We are asked if we could approximate the price would be to prolong the lease by 90 years. Similar residencies in Helston with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease elapsed on 18 January 2096. Considering the 70 years remaining we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.