Top reasons for Falmouth lease extension

Main reasons to commence your Falmouth lease extension today:

Increase your lease and increase your Falmouth property value

Falmouth 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 the lease gets more expensive. It is the case that most Falmouth tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Falmouth you really ought to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to loan monies with a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Falmouth lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake Falmouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Falmouth Lease Extension Example Cases:

Dexter, Falmouth, Cornwall,

Dexter was the the leasehold owner of a high value apartment in Falmouth on the market with a lease of a little over sixty years unexpired. Dexter informally spoke with his landlord a well known Bristol-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 on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert legal guidance and secured satisfactory resolution informally and sell the property.

Falmouth case:

Mrs Jasmine Morgan was assigned a lease of a studio apartment in Falmouth in April 2007. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative residencies in Falmouth with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed quarterly. The lease termination date was on 17 July 2095. Given that there were 69 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.

Falmouth case:

Last Winter we were contacted by Ms L Alexander , who acquired a first floor flat in Falmouth in April 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative homes in Falmouth with an extended lease were worth £290,000. The average amount of ground rent was £60 invoiced annually. The lease finished in 2106. Having 80 years outstanding we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.