There is no doubt about it a leasehold property in Redruth is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Redruth will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Redruth with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Using our service will provide you increased control over the value of your Redruth leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the landlord of her leasehold apartment in Redruth, Katherine initiated the lease extension process just as the lease was coming close to the critical 80-year threshold. The legal work was finalised in May 2011. The freeholder’s costs were kept to an absolute minimum.
Mr E González bought a one bedroom apartment in Redruth in March 1997. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar residencies in Redruth with a long lease were valued about £205,000. The average ground rent payable was £50 collected yearly. The lease concluded in 2104. Having 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 not including legals.
Dr Teddy Fournier owned a basement flat in Redruth in October 2011. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable premises in Redruth with a long lease were valued about £270,000. The average ground rent payable was £65 billed monthly. The lease finished in 2093. Taking into account 68 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.