The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Falmouth can extend the lease for an additional 90 years under statute. Do give careful consideration before delaying your Falmouth lease extension. Shelving that expense now simply escalates the amount you will eventually have to pay to extend the lease.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Falmouth,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Falmouth valuers.
Ethan owned a conversion flat in Falmouth being sold with a lease of a little over fifty eight years left. Ethan informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were e-mailed by Dr Francesca Jones , who bought a newly refurbished apartment in Falmouth in November 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical residencies in Falmouth with a long lease were worth £275,000. The average amount of ground rent was £55 collected annually. The lease expired in 2102. Given that there were 76 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.
Last February we were e-mailed by Ms Alexandra Bonnet , who bought a studio flat in Falmouth in May 1998. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Similar homes in Falmouth with 100 year plus lease were valued about £176,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease concluded in 2082. Considering the 56 years left we approximated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of fees.