Top reasons for Fowey lease extension

Top reasons for lease extension now:

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

The market value of a leasehold property in Fowey depends on how many years the lease has remaining. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed well before the eighty year mark. Leasehold Reform legislation entitles Fowey qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

Fowey property with a lease extension is almost the same value as a freehold

Leasehold premises in Fowey with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Lenders may decide not to finance a property with a short lease

Lenders are inclined not grant a mortgage on short residential leases. You are likely to experience difficulties where you need to sell your flat in Fowey if the remaining lease term is below the criteria set by most mortgage companies. Different mortgage companies have varying criteria but on the whole they are looking for an unexpired term of at least 65 years.

What makes us experts in Fowey lease extensions?

The lawyers that we work with procure Fowey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Fowey Lease Extension Case Studies:

Dylan, Fowey, Cornwall,

Dylan was the the leasehold owner of a conversion flat in Fowey on the market with a lease of a little over fifty eight years unexpired. Dylan on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Dylan to invoke his statutory right. Dylan procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

Fowey case:

Ms Millie Morel owned a basement apartment in Fowey in April 2004. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative flats in Fowey with a long lease were valued around £235,200. The mid-range ground rent payable was £45 billed every twelve months. The lease concluded in 2092. Considering the 66 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.

Fowey case:

In 2014 we were contacted by Dr Dylan Morris who, having was assigned a lease of a ground floor flat in Fowey in August 2012. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparable flats in Fowey with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 billed annually. The lease terminated on 19 August 2103. Considering the 77 years left we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.