Top reasons for Truro lease extension

Why you should start your Truro lease extension today:

A Truro leasehold property depreciates with the years remaining on the lease.

Truro leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Truro tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Truro you really ought to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

Truro property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Truro with over 100 years remaining 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may decide not to loan monies with a short lease

The trend since over the last decade has been for banks to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. Historically mortgage companies were content with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Truro?

Engaging our service will provide you better control over the value of your Truro leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Truro Lease Extension Case Studies:

Muhammad, Truro, Cornwall,

Muhammad was the the leasehold owner of a conversion apartment in Truro being marketed with a lease of a little over fifty eight years remaining. Muhammad informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.

Truro case:

Last Spring we were called by Mr and Mrs. R Mason , who purchased a one bedroom apartment in Truro in March 1995. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable premises in Truro with 100 year plus lease were valued about £245,000. The mid-range ground rent payable was £50 billed quarterly. The lease came to a finish in 2094. Taking into account 68 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.

Truro case:

Last month we were called by Mr and Mrs. L Parker , who acquired a one bedroom flat in Truro in February 2012. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative homes in Truro with an extended lease were in the region of £285,000. The average ground rent payable was £55 collected yearly. The lease concluded on 5 September 2105. Having 79 years outstanding we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.