The market value of Redruth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is below than eighty years
Leasehold premises in Redruth with in excess of 100 years unexpired 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 home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 undertake 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 conveyancing solicitor we work with provide it.
In the wake of 9 months of lengthy correspondence with the landlord of her basement apartment in Redruth, Zoe started the lease extension process as the 80 year deadline was quickly nearing. The lease extension was finalised in September 2011. The landlord’s fees were kept to an absolute minimum.
Last Spring we were approach by Dr Samantha Harris , who was assigned a lease of a purpose-built flat in Redruth in November 2005. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparative homes in Redruth with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease elapsed in 2098. Considering the 72 years remaining we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
In 2014 we were called by Mrs V Moreau who, having owned a first floor apartment in Redruth in April 2010. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Redruth with 100 year plus lease were worth £233,200. The average ground rent payable was £60 billed every twelve months. The lease finished in 2087. Having 61 years outstanding we approximated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus costs.