Unfortunately that a Redruth residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Redruth property prices.Where your lease has approximately 90 years left, you need to start thinking about 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 slips under 80 years - otherwise a higher amount will be payable. Most leasehold owners in Redruth will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Redruth can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 procuring 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 eight months of lengthy correspondence with the freeholder of her purpose-built apartment in Redruth, Isabelle started the lease extension process just as her lease was nearing the critical eighty-year mark. The lease extension was finalised in November 2011. The freeholder’s costs were negotiated to under 500 pounds.
Last Winter we were e-mailed by Mr and Mrs. R Gunderson , who owned a studio apartment in Redruth in June 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparable premises in Redruth with 100 year plus lease were worth £210,000. The average ground rent payable was £50 billed every twelve months. The lease ended in 2105. Given that there were 80 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
Last January we were called by Dr Jake Wilson , who bought a ground floor apartment in Redruth in October 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical premises in Redruth with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £45 collected per annum. The lease finished in 2094. Having 69 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.