When it comes to domestic leasehold property in Redruth, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Anyone in Redruth with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Redruth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Nathan, came precariously near to the eighty-year threshold with the lease on his studio flat in Redruth. In buying his flat 18 years previously, the length of the lease was of little bearing. As luck would have it, he realised he would imminently be paying an inflated amount for Extending the lease. Nathan arranged for a lease extension just in the nick of time last September. Nathan and the freeholder eventually settled on sum of £5,000 . If he not met the deadline, the price would have increased by a minimum £950.
In 2014 we were called by Mr and Mrs. I Clark who, having owned a ground floor apartment in Redruth in November 2010. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Redruth with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease concluded in 2094. Taking into account 68 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
Mr and Mrs. M Michel completed a ground floor flat in Redruth in August 2004. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Redruth with a long lease were in the region of £208,600. The average ground rent payable was £60 collected every twelve months. The lease terminated on 10 January 2083. Considering the 57 years outstanding we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including professional charges.