Helston leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, 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 lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Helston will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some circumstances you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers 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 lawyer we work with provide it.
Half a year ago Michael, started to get close to the 80-year mark with the lease on his one bedroom apartment in Helston. In buying his property two decades ago, the length of the lease was of no concern. Fortunately, he realised he needed to take action soon on Extending the lease. Michael was able to extend his lease just under the wire in September. Michael and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,025.
Mr and Mrs. W Ward owned a one bedroom apartment in Helston in November 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Helston with 100 year plus lease were worth £265,200. The mid-range amount of ground rent was £65 collected quarterly. The lease finished on 20 September 2091. Given that there were 66 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus fees.
Last Autumn we were contacted by Mr J Sharif , who was assigned a lease of a garden flat in Helston in October 2002. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative homes in Helston with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced annually. The lease end date was on 12 October 2080. Given that there were 55 years left we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus legals.