Redruth leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Redruth will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Redruth with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Using our service gives 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 conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jacob, started to get close to the 80-year threshold with the lease on his basement flat in Redruth. Having purchased his home 19 years previously, the unexpired term was of little concern. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Jacob arranged for a lease extension just under the wire in August. Jacob and the landlord subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the premium would have gone up by at least £1,150.
In 2014 we were contacted by Mr and Mrs. V Norbert who, having completed a studio apartment in Redruth in September 2006. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical residencies in Redruth with a long lease were worth £252,800. The mid-range ground rent payable was £65 collected yearly. The lease finished on 12 June 2090. Given that there were 65 years as a residual term we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including professional charges.
Mr and Mrs. L Cox took over the lease of a purpose-built apartment in Redruth in August 2003. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical properties in Redruth with 100 year plus lease were valued about £191,400. The average ground rent payable was £55 billed per annum. The lease ran out on 8 January 2079. Taking into account 54 years unexpired we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including costs.