Truro leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Truro enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Truro you really ought to see if your lease has between seventy and ninety years left. There are compelling reasons why a Truro leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is effected without delay
Leasehold premises in Truro with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Leeds Building Society | |
| National Westminster Bank | |
| The Mortgage Works |
Regardless of whether you are a tenant or a landlord in Truro,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Truro valuers.
14 months ago Jasper, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Truro. In buying his home twenty years ago, the unexpired term was of minimal importance. Fortunately, he recognised he would imminently be paying an inflated amount for a lease extension. Jasper extended the lease at the eleventh hour in June. Jasper and the freeholder eventually agreed on a premium of £5,000 . If he not met the deadline, the sum would have increased by at least £875.
In 2014 we were e-mailed by Mr R Vincent who, having acquired a studio flat in Truro in March 1999. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparable flats in Truro with 100 year plus lease were valued around £225,400. The average ground rent payable was £45 invoiced yearly. The lease terminated on 25 January 2090. Given that there were 64 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of fees.
In 2012 we were phoned by Dr William Mercier who, having took over the lease of a garden apartment in Truro in April 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Truro with 100 year plus lease were worth £270,000. The average ground rent payable was £55 billed yearly. The lease terminated in 2101. Given that there were 75 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.