Chances are that if you own a flat in Fowey you actually own a long leasehold interest over your property
Leasehold properties in Fowey with in excess of 100 years remaining on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service will provide you increased control over the value of your Fowey leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jamie was the the leasehold proprietor of a high value flat in Fowey being sold with a lease of a little over 72 years remaining. Jamie informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie procured expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2012 we were phoned by Dr A Vincent who, having took over the lease of a newly refurbished apartment in Fowey in August 2010. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Identical homes in Fowey with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed in 2077. Given that there were 51 years unexpired we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus expenses.
Mr and Mrs. K Mitchell was assigned a lease of a one bedroom flat in Fowey in February 1997. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical premises in Fowey with a long lease were valued about £210,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease concluded in 2088. Given that there were 62 years unexpired we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.