Main reasons to start your Falmouth lease extension

Why you should start your Falmouth lease extension today:

A Falmouth lease depreciates with the years remaining on the lease.

It’s a harsh certainty that a Falmouth residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Falmouth property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. Most flat owners in Falmouth will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.

Falmouth property with a lease extension has roughly the same value as a freehold

Leasehold properties in Falmouth with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may not issue a mortgage with a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against flats with shorter lease terms, particularly under seventy years as they are considered to be insufficient security.

What makes us experts in Falmouth lease extensions?

Engaging our service gives you enhanced control over the value of your Falmouth leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Falmouth Lease Extension Example Cases:

Rhiannon, Falmouth, Cornwall,

Off the back of unsuccessful correspondence with the landlord of her leasehold flat in Falmouth, Rhiannon commenced the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was finalised in September 2015. The landlord’s costs were negotiated to slightly above 450 pounds.

Falmouth case:

In 2012 we were phoned by Mr N González who, having completed a newly refurbished apartment in Falmouth in June 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Falmouth with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease expiry date was in 2099. Considering the 73 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.

Falmouth case:

Mr and Mrs. K Evans completed a recently refurbished apartment in Falmouth in March 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in Falmouth with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 collected per annum. The lease terminated on 24 July 2079. Given that there were 53 years unexpired we estimated the premium to the landlord to extend the lease to be between £37,100 and £42,800 plus legals.