Fowey leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Fowey will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Fowey with more than one hundred 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 upside in buying the freehold unless savings on ground rent and estate charges justify it.
Lender | Requirement |
---|---|
Accord Mortgages | 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. |
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
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. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Fowey leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Freddie was the the leasehold proprietor of a high value apartment in Fowey on the market with a lease of just over 59 years remaining. Freddie on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Freddie to exercise his statutory right. Freddie procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2013 we were called by Dr Y Reed who, having purchased a studio flat in Fowey in April 1999. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparative premises in Fowey with an extended lease were valued around £275,000. The mid-range ground rent payable was £55 billed every twelve months. The lease lapsed in 2101. Considering the 77 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.
Mr Lewis Rogers bought a one bedroom flat in Fowey in February 2009. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Fowey with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 2 October 2081. Having 57 years remaining we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.