On the balance of probabilities if you own a flat in Truro you actually own a long leasehold interest over your property
Leasehold residencies in Truro with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Truro leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the freeholder of her ground floor flat in Truro, Alisha initiated the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The transaction was concluded in April 2011. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Mr E Girard , who completed a ground floor apartment in Truro in October 2000. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical flats in Truro with a long lease were in the region of £227,800. The average ground rent payable was £45 collected every twelve months. The lease termination date was on 1 November 2091. Considering the 65 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.
Last Winter we were phoned by Mr and Mrs. V Adams , who purchased a one bedroom flat in Truro in September 1995. We are asked if we could approximate the price could be to extend the lease by ninety years. Identical properties in Truro with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected every twelve months. The lease ran out on 21 February 2102. Given that there were 76 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.