Main reasons to commence your Redruth lease extension

Main reasons to start your Redruth lease extension today:

A Redruth lease depreciates with the years remaining on the lease.

Redruth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Redruth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Redruth you must check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Redruth property with a lease extension is almost the same value as a freehold

Leasehold properties in Redruth with in excess of 100 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not issue a mortgage with a short lease

Lenders are tightening their criteria and many now want flats to have at least 60 if not 70 years left at the expiry of the mortgage. As a number of flats in Redruth were built in the fifties, sixties and seventies as a result many now require lease extensions if they wish to obtain a mortgage.

Why use us for your lease extension in Redruth?

Lease extensions in Redruth can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.

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.

Redruth Lease Extension Example Cases:

Thomas, Redruth, Cornwall

Two years ago Thomas, came seriously near to the eighty-year threshold with the lease on his one bedroom flat in Redruth. In buying his home 19 years ago, the lease term was of little relevance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Thomas arranged for a lease extension just under the wire last June. Thomas and the freeholder ultimately settled on a premium of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £1,150.

Redruth case:

In 2011 we were approached by Mr and Mrs. W Vincent who, having purchased a first floor flat in Redruth in April 2003. We are asked if we could approximate the price could be for a 90 year lease extension. Identical properties in Redruth with an extended lease were valued about £201,200. The average amount of ground rent was £55 invoiced annually. The lease ran out in 2082. Given that there were 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus expenses.

Redruth case:

Mrs F Thompson owned a studio apartment in Redruth in November 2006. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Redruth with an extended lease were in the region of £300,000. The average ground rent payable was £50 collected monthly. The lease end date was in 2102. Taking into account 76 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.