It’s an underpublicised truth that a Redruth residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Redruth property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. The majority of flat owners in Redruth will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Redruth with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| TSB | |
| The Mortgage Works | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Redruth,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Redruth valuers.
Kyle owned a 2 bedroom apartment in Redruth being marketed with a lease of fraction over sixty years left. Kyle on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last Winter we were e-mailed by Dr T Norbert , who moved into a one bedroom apartment in Redruth in August 2012. The question was if we could approximate the premium would be for a ninety year lease extension. Identical properties in Redruth with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease ran out on 21 July 2097. Having 71 years as a residual term we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
In 2014 we were e-mailed by Mr C Richardson who, having was assigned a lease of a ground floor flat in Redruth in May 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative homes in Redruth with a long lease were in the region of £225,800. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed on 23 January 2086. Given that there were 60 years outstanding we approximated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of expenses.