It’s an underpublicised certainty that a Redruth residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Redruth property market.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 dips lower than 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Redruth will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Royal Bank of Scotland |
The conveyancers that we work with procure 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 lawyer we work with provide it.
Dexter owned a conversion apartment in Redruth on the market with a lease of just over 61 years remaining. Dexter informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Dexter to exercise his statutory right. Dexter procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr and Mrs. S Torres completed a garden flat in Redruth in January 1999. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative properties in Redruth with a long lease were valued around £181,600. The mid-range ground rent payable was £55 billed every twelve months. The lease elapsed on 9 May 2078. Taking into account 52 years outstanding we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including legals.
Last month we were approach by Dr Mason Alexander , who moved into a newly refurbished flat in Redruth in October 2001. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical flats in Redruth with an extended lease were worth £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease expiry date was in 2098. Given that there were 72 years left we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.