Chances are that where you own a flat in Falmouth you actually own a long leasehold interest over your property
Leasehold residencies in Falmouth with in excess of 100 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Falmouth can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Falmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Isaac, came dangerously close to the eighty-year mark with the lease on his studio flat in Falmouth. In buying his property twenty years previously, the length of the lease was of minimal bearing. Fortunately, he recognised he would imminently be paying way over the odds for Extending the lease. Isaac was able to extend his lease at the eleventh hour in May. Isaac and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If the lease had gone below 80 years, the premium would have gone up by a minimum £1,050.
Dr Joseph Patel owned a garden flat in Falmouth in September 2008. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative properties in Falmouth with an extended lease were in the region of £255,000. The average amount of ground rent was £50 billed yearly. The lease lapsed in 2096. Considering the 70 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Dr C Evans was assigned a lease of a newly refurbished flat in Falmouth in September 2000. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in Falmouth with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed annually. The lease lapsed on 15 May 2076. Considering the 50 years outstanding we approximated the premium to the landlord to extend the lease to be within £44,700 and £51,600 not including professional charges.