With a long leasehold property in Falmouth, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years left. Leasehold owners in Falmouth with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has below eighty years remaining, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Falmouth with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Falmouth,the lease extension solicitors that we work with will always be prepared 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.
Last Christmas Eli, came dangerously near to the eighty-year threshold with the lease on his two bedroom flat in Falmouth. Having purchased his property twenty years ago, the unexpired term was of minimal concern. Fortunately, he realised he would soon be paying an escalated premium for Extending the lease. Eli extended the lease just in the nick of time last August. Eli and the freeholder via the management company eventually agreed on the final figure of £6,000 . If he not met the deadline, the sum would have gone up by at least £1,000.
Mr and Mrs. L García moved into a ground floor flat in Falmouth in July 2006. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable homes in Falmouth with a long lease were in the region of £191,000. The average ground rent payable was £65 invoiced annually. The lease terminated in 2084. Given that there were 58 years unexpired we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 not including costs.
Mr Cameron Collins bought a basement apartment in Falmouth in February 2003. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparative premises in Falmouth with a long lease were in the region of £250,000. The average ground rent payable was £50 invoiced per annum. The lease terminated on 16 June 2095. Taking into account 69 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.