The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Fowey have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Fowey lease extension. Putting off the costs now simply escalates the amount you will eventually be required to pay for a lease extension.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Fowey leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her ground floor apartment in Fowey, Katherine commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The lease extension completed in March 2014. The landlord’s charges were kept to an absolute minimum.
Mr Stanley Nelson owned a basement flat in Fowey in April 2004. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Similar residencies in Fowey with 100 year plus lease were worth £242,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease ended on 27 January 2093. Considering the 67 years remaining we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus costs.
In 2013 we were phoned by Mr and Mrs. K Mason who, having owned a purpose-built flat in Fowey in November 2000. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable homes in Fowey with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 billed every twelve months. The lease ended on 5 October 2104. Given that there were 78 years left we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.