The only way is down when it comes to Falmouth lease terms. Falmouth leaseholds that have a residual term shorter than 80 years will de-escalate in value even faster, and the cost to extend your lease will increase.
Leasehold residencies in Falmouth with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Falmouth,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Falmouth valuers.
In the wake of 6 months of unsuccessful negotiations with the landlord of her purpose-built apartment in Falmouth, Robyn initiated the lease extension process as the eighty year mark was swiftly advancing. The lease extension completed in June 2009. The freeholder’s fees were restricted to less than 700 GBP.
In 2010 we were phoned by Mr and Mrs. K Clark who, having owned a one bedroom apartment in Falmouth in January 2009. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical flats in Falmouth with a long lease were worth £235,200. The average ground rent payable was £45 billed per annum. The lease elapsed in 2092. Given that there were 66 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.
Dr K Collins took over the lease of a ground floor apartment in Falmouth in June 1995. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparative homes in Falmouth with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed on 5 May 2103. Given that there were 77 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.