Falmouth leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Falmouth will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | 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. |
| 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 |
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 conveyancing solicitor we work with provide it.
In the wake of 9 months of lengthy correspondence with the freeholder of her studio apartment in Falmouth, Jade started the lease extension process as the 80 year deadline was swiftly nearing. The legal work completed in May 2008. The freeholder’s fees were kept to an absolute minimum.
Last year we were e-mailed by Mrs I Allen , who bought a ground floor flat in Falmouth in March 2006. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Identical properties in Falmouth with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 billed monthly. The lease elapsed on 19 September 2084. Having 60 years left we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 plus legals.
Mr T Nguyen was assigned a lease of a one bedroom flat in Falmouth in September 2012. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar properties in Falmouth with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed monthly. The lease elapsed in 2095. Taking into account 71 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.