Why you should start your Falmouth lease extension
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Main reasons to commence your Falmouth lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/falmouth">Falmouth</a> leasehold property depreciates with the years remaining on the lease.
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<p> With a long leasehold property in Falmouth, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Residents in Falmouth with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once a lease has below eighty years outstanding, under the current statute the freeholder is entitled to calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is payable. <h4>An extended lease is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
<h4>Lenders may not finance a property on a short lease</h4> Lending institutions have set criteria when lending funds charged on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term falls beneath a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than 75 years as acceptable security. In addition to this being important when selling, it is also relevant if you are seeking to refinance your Falmouth home.
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<th> Requirement
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<td>Coventry Building Society</td>
<td> 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.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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Why use us for your lease extension in Falmouth? </h4>
<p> Using our service will provide you increased control over the value of your Falmouth leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell.
The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Falmouth Lease Extension Case Studies:
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<h5> Jude, Falmouth, Cornwall</h5>
<p> During the course of the last few months Jude, started to get near to the eighty-year mark with the lease on his purpose- built flat in Falmouth. Having bought his flat twenty years ago, the unexpired term was of no bearing. by good luck, he realised he needed to take steps soon on Extending the lease. Jude was able to extend his lease just ahead of time last July. Jude and the freeholder subsequently agreed on sum of £6,000 . If the lease had descended lower than eighty years, the price would have increased by a minimum £1,125.
<h5>Falmouth case:</h5>
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Last Spring we were phoned by Dr Harry Clark , who
bought a basement apartment in Falmouth in August 1995. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable flats in Falmouth with an extended lease were valued about £198,400. The average amount of ground rent was £65 invoiced monthly. The lease elapsed in 2085. Given that there were 59 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus costs.
<h5>Falmouth case:</h5>
<p> Dr D Davies bought a first floor flat in Falmouth in June 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical residencies in Falmouth with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed on 3 March 2096. Considering the 70 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
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