As the length of the unexpired term of a Helston residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Helston will qualify for this right; however a conveyancer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 also be not less than 75 years 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Helston,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Helston valuers.
During the course of the last few months Edward, started to get near to the eighty-year mark with the lease on his basement apartment in Helston. In buying his property two decades ago, the lease term was of minimal significance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Edward was able to extend his lease just ahead of time in May. Edward and the freeholder via the managing agents in the end agreed on a premium of £6,000 . If he not met the deadline, the figure would have gone up by a minimum £1,100.
In 2010 we were approached by Ms Isabella Moore who, having moved into a recently refurbished flat in Helston in April 2002. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Similar premises in Helston with an extended lease were in the region of £174,200. The average ground rent payable was £55 billed yearly. The lease elapsed on 23 June 2076. Having 51 years unexpired we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.
In 2012 we were contacted by Dr J Peterson who, having bought a purpose-built apartment in Helston in May 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Helston with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ran out on 15 March 2096. Having 71 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.