Helston leases on residential deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold 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 formalities to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
Irrespective of whether you are a tenant or a landlord in Helston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Helston valuers.
John was the the leasehold owner of a conversion apartment in Helston being sold with a lease of just over 59 years left. John on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. 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 at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were John to invoke his statutory right. John obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the flat.
Last Autumn we were contacted by Mr and Mrs. L Turner , who was assigned a lease of a basement flat in Helston in October 2004. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable residencies in Helston with an extended lease were valued about £205,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out in 2105. Taking into account 79 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
Last year we were e-mailed by Dr U Harris , who completed a purpose-built apartment in Helston in May 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable flats in Helston with an extended lease were valued about £275,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended on 22 May 2094. Taking into account 68 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.