For those whose Redruth home is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Redruth can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience 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.
In the wake of 6 months of unsuccessful discussions with the freeholder of her first floor apartment in Redruth, Jade initiated the lease extension process as the eighty year deadline was swiftly coming. The transaction was concluded in March 2015. The landlord’s fees were kept to an absolute minimum.
Dr P Mason moved into a basement apartment in Redruth in July 1997. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Redruth with a long lease were valued about £250,400. The mid-range amount of ground rent was £65 collected monthly. The lease expired in 2090. Considering the 64 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus expenses.
Last month we were approach by Mr F Clark , who bought a recently refurbished flat in Redruth in September 1999. The question was if we could approximate the price would be for a ninety year lease extension. Comparative premises in Redruth with a long lease were in the region of £184,000. The average amount of ground rent was £55 invoiced every twelve months. The lease expired on 7 January 2079. Considering the 53 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.