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. The majority of owners of residential leasehold property in Falmouth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Falmouth you would be well advised to see if your lease has between seventy and 90 years left. There are compelling reasons why a Falmouth flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Falmouth with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Falmouth can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Falmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac was the the leasehold proprietor of a high value flat in Falmouth being marketed with a lease of fraction over 61 years remaining. Isaac informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
In 2014 we were e-mailed by Dr T François who, having completed a one bedroom apartment in Falmouth in March 2000. The question was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparative homes in Falmouth with an extended lease were in the region of £173,800. The mid-range ground rent payable was £65 collected every twelve months. The lease termination date was on 11 July 2081. Taking into account 55 years outstanding we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus legals.
Mr and Mrs. B Rogers purchased a recently refurbished apartment in Falmouth in July 2004. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative properties in Falmouth with a long lease were worth £235,200. The average amount of ground rent was £45 invoiced every twelve months. The lease lapsed on 6 July 2092. Having 66 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.