As the length of the unexpired term of a Falmouth residential lease decreases so does its value and therefore the value of your property. If the residual term has, beyond 99 years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Falmouth will qualify for this right; however a lawyer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Falmouth with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Falmouth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Falmouth valuers.
Daniel owned a high value flat in Falmouth being marketed with a lease of fraction over 72 years unexpired. Daniel on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Daniel to exercise his statutory right. Daniel procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. N Patel acquired a purpose-built flat in Falmouth in February 2007. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable flats in Falmouth with a long lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed yearly. The lease lapsed on 18 May 2076. Taking into account 50 years left we approximated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus fees.
In 2011 we were approached by Mr and Mrs. G Martínez who, having bought a studio flat in Falmouth in August 2010. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative premises in Falmouth with an extended lease were valued about £208,200. The average ground rent payable was £65 collected quarterly. The lease concluded in 2087. Having 61 years unexpired we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 not including professional charges.