For anyone whose Falmouth property is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Engaging our service will provide you increased 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the landlord of her leasehold apartment in Falmouth, Abbie commenced the lease extension process just as her lease was nearing the crucial eighty-year deadline. The legal work was concluded in October 2007. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were phoned by Mr Elijah James who, having bought a first floor flat in Falmouth in July 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Falmouth with a long lease were worth £227,800. The mid-range ground rent payable was £45 invoiced annually. The lease ended on 4 November 2090. Considering the 65 years unexpired we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.
In 2014 we were phoned by Mr and Mrs. O Hall who, having was assigned a lease of a garden apartment in Falmouth in October 2003. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative residencies in Falmouth with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 billed yearly. The lease concluded in 2100. Taking into account 75 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.