Fowey leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher premium will be payable. Leasehold owners in Fowey will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Fowey,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fowey valuers.
Ali was the the leasehold proprietor of a 2 bedroom apartment in Fowey being sold with a lease of just over 59 years outstanding. Ali on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Ali to exercise his statutory right. Ali procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Autumn we were phoned by Mr T Hernández , who moved into a purpose-built apartment in Fowey in May 2007. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative premises in Fowey with 100 year plus lease were worth £218,000. The average ground rent payable was £45 invoiced yearly. The lease elapsed on 14 August 2089. Having 63 years remaining we approximated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including fees.
Last year we were contacted by Mr and Mrs. C Evans , who purchased a one bedroom flat in Fowey in September 1995. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar properties in Fowey with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £50 invoiced yearly. The lease came to a finish on 8 November 2100. Having 74 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.