As the length of the unexpired term of a Falmouth residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 99 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. Most flat owners in Falmouth will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Falmouth with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify 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. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Falmouth leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Joseph, started to get close to the 80-year threshold with the lease on his leasehold flat in Falmouth. Having purchased his property two decades ago, the lease term was of no concern. Thankfully, he noticed he would imminently be paying an inflated amount for Extending the lease. Joseph arranged for a lease extension just ahead of time in August. Joseph and the landlord eventually settled on an amount of £6,000 . If the lease had dipped to less than eighty years, the figure would have escalated by at least £875.
In 2010 we were e-mailed by Mr and Mrs. T Davis who, having took over the lease of a studio flat in Falmouth in October 2007. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar residencies in Falmouth with a long lease were valued about £215,600. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish on 26 January 2088. Considering the 62 years as a residual term we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including legals.
Mr and Mrs. S Fournier acquired a recently refurbished flat in Falmouth in June 2008. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Falmouth with an extended lease were worth £265,000. The average amount of ground rent was £50 collected per annum. The lease ran out on 17 November 2099. Considering the 73 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.