The 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 materialy once the unexpired lease term is below than eighty years
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Redruth can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 landlord of her leasehold apartment in Redruth, Naomi started the lease extension process just as the lease was coming close to the critical eighty-year deadline. The legal work completed in July 2014. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were contacted by Dr Ethan Vincent who, having completed a one bedroom apartment in Redruth in August 1999. The question was if we could estimate the price could be to extend the lease by an additional years. Similar residencies in Redruth with a long lease were in the region of £270,000. The average ground rent payable was £65 invoiced every twelve months. The lease lapsed in 2093. Taking into account 68 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
Last Spring we were contacted by Dr Jodie Robinson , who purchased a purpose-built apartment in Redruth in February 2001. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical properties in Redruth with an extended lease were valued about £208,600. The average amount of ground rent was £60 invoiced quarterly. The lease concluded in 2082. Taking into account 57 years remaining we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of fees.