Helston leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. Flat owners in Helston will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Helston with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Helston,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Helston valuers.
Following protracted correspondence with the freeholder of her two bedroom flat in Helston, Bethany commenced the lease extension process just as her lease was approaching the crucial eighty-year threshold. The lease extension was finalised in September 2012. The landlord’s costs were kept to an absolute minimum.
Last Summer we were contacted by Mr and Mrs. J Carter , who purchased a first floor flat in Helston in May 1996. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Identical flats in Helston with an extended lease were in the region of £205,000. The average amount of ground rent was £50 collected yearly. The lease end date was on 28 August 2103. Considering the 78 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
Last year we were phoned by Dr N Collins , who bought a first floor flat in Helston in May 2000. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar residencies in Helston with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 collected yearly. The lease concluded in 2092. Taking into account 67 years left we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 not including legals.