With a residential leasehold property in Redruth, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Anyone in Redruth with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under eighty years left, under the relevant statute the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Redruth with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Redruth,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Redruth valuers.
Trailing protracted negotiations with the landlord of her one bedroom flat in Redruth, Alicia started the lease extension process as the eighty year deadline was swiftly approaching. The lease extension was concluded in March 2005. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. B Wright acquired a basement apartment in Redruth in March 2008. The dilemma was if we could estimate the price could be to prolong the lease by 90 years. Similar homes in Redruth with an extended lease were worth £260,200. The mid-range ground rent payable was £65 collected per annum. The lease expired in 2092. Given that there were 66 years remaining we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 not including fees.
In 2012 we were e-mailed by Mrs Tia Campbell who, having took over the lease of a ground floor apartment in Redruth in September 2009. The question was if we could approximate the price would be for a ninety year lease extension. Similar residencies in Redruth with an extended lease were worth £198,800. The average amount of ground rent was £55 collected annually. The lease lapsed on 22 October 2081. Having 55 years unexpired we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of expenses.