There is no doubt about it a leasehold flat or house in Redruth is a wasting asset as a result of the diminishing lease term. If the residual term has, over 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Redruth will qualify for this right; that being said a conveyancer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Redruth with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Redruth leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian was the the leasehold proprietor of a high value flat in Redruth on the market with a lease of a few days over fifty eight years remaining. Sebastian informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last year we were phoned by Mrs V Lambert , who bought a first floor flat in Redruth in April 2012. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Redruth with a long lease were valued about £218,400. The mid-range ground rent payable was £60 billed annually. The lease termination date was in 2085. Taking into account 59 years outstanding we estimated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of professional charges.
Dr Edward Thomas took over the lease of a garden apartment in Redruth in August 2005. The question was if we could estimate the premium could be to prolong the lease by an additional years. Identical premises in Redruth with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 billed annually. The lease expired in 2105. Taking into account 79 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.