Truro leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. Flat owners in Truro will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and procedures to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Truro with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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; |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Engaging our service will provide you better control over the value of your Truro leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted negotiations with the landlord of her studio flat in Truro, Samantha started the lease extension process just as her lease was approaching the all-important eighty-year threshold. The legal work was finalised in June 2014. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were approach by Mrs Tia Nguyen , who bought a garden flat in Truro in June 2004. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Truro with a long lease were worth £173,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease end date was in 2080. Considering the 55 years as a residual term we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.
In 2009 we were contacted by Dr S Lefebvre who, having acquired a basement apartment in Truro in May 2010. The question was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Similar homes in Truro with 100 year plus lease were worth £235,200. The mid-range ground rent payable was £45 invoiced monthly. The lease terminated in 2091. Considering the 66 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.