There is no doubt about it a leasehold flat or house in Redruth is a wasting asset as a result of the shortening lease. If the lease has, in excess of 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Redruth will meet the qualifying criteria; however a conveyancing solicitor can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Redruth can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Redruth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jude owned a high value flat in Redruth on the market with a lease of a little over 61 years unexpired. Jude on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder 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 £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Last Autumn we were approach by Dr Y Brooks , who purchased a purpose-built apartment in Redruth in October 2007. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Redruth with an extended lease were worth £267,600. The average ground rent payable was £65 collected yearly. The lease finished in 2093. Taking into account 67 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 not including expenses.
In 2010 we were phoned by Mr and Mrs. W Petit who, having took over the lease of a purpose-built apartment in Redruth in November 1998. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative flats in Redruth with a long lease were valued about £201,200. The average amount of ground rent was £55 billed yearly. The lease expired in 2082. Considering the 56 years unexpired we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of fees.