With a long leasehold premises in Truro, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years left. Leasehold owners in Truro with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. Once a lease has under eighty years left, under the relevant statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Truro can be a difficult process. We recommend you get professional help 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 dealing with Truro lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Aarav, came seriously close to the 80-year mark with the lease on his ground floor flat in Truro. In buying his property 18 years ago, the unexpired term was of little significance. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Aarav was able to extend his lease just under the wire last June. Aarav and the freeholder via the management company eventually agreed on a premium of £5,000 . If the lease had descended lower than eighty years, the sum would have increased by a minimum £850.
Dr Alex Norbert bought a one bedroom flat in Truro in November 2000. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparable premises in Truro with a long lease were valued around £261,600. The average ground rent payable was £60 billed annually. The lease finished in 2077. Taking into account 52 years remaining we approximated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 plus expenses.
Mr and Mrs. M Adams moved into a basement flat in Truro in March 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Truro with a long lease were worth £218,000. The mid-range amount of ground rent was £45 collected per annum. The lease lapsed on 27 November 2088. Having 63 years left we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of legals.