Falmouth leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional 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 conveyancing solicitor to confirm your eligibility. In certain cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Engaging our service gives you enhanced control over the value of your Falmouth leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jayden was the the leasehold owner of a 2 bedroom flat in Falmouth on the market with a lease of a few days over 61 years outstanding. Jayden on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were phoned by Dr F Hall who, having was assigned a lease of a one bedroom apartment in Falmouth in October 1996. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Falmouth with 100 year plus lease were worth £232,800. The average amount of ground rent was £45 collected every twelve months. The lease lapsed on 23 January 2091. Considering the 65 years remaining we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Last month we were approach by Mr and Mrs. K Thompson , who took over the lease of a one bedroom flat in Falmouth in September 2007. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Similar homes in Falmouth with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed monthly. The lease came to a finish on 18 February 2102. Taking into account 76 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.