There is no doubt about it a leasehold property in Fowey is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. The majority of flat owners in Fowey will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder 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.
Last year Harvey, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Fowey. Having purchased his property 19 years ago, the unexpired term was of little bearing. Luckily, he realised he needed to take action soon on a lease extension. Harvey extended the lease at the eleventh hour last April. Harvey and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £850.
Last Autumn we were contacted by Mr M Torres , who moved into a studio flat in Fowey in September 2005. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Fowey with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 billed annually. The lease expired in 2097. Taking into account 71 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Mr and Mrs. K Rose bought a one bedroom flat in Fowey in July 2005. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparative flats in Fowey with a long lease were in the region of £254,200. The average ground rent payable was £60 billed yearly. The lease terminated on 13 May 2077. Taking into account 51 years outstanding we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of legals.