Unfortunately that a Fowey residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Fowey property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term dips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Fowey will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Fowey with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Fowey can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Fowey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Freddie, started to get near to the 80-year threshold with the lease on his one bedroom flat in Fowey. Having bought his flat two decades ago, the unexpired term was of minimal significance. Luckily, he became aware that he needed to take action soon on a lease extension. Freddie was able to extend his lease at the eleventh hour last April. Freddie and the freeholder in the end settled on sum of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £925.
Last February we were called by Dr S Lefebvre , who purchased a ground floor apartment in Fowey in March 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar homes in Fowey with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 collected quarterly. The lease termination date was in 2101. Considering the 76 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last month we were phoned by Dr Lewis Lefebvre , who bought a ground floor flat in Fowey in June 1999. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Fowey with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 collected yearly. The lease terminated on 23 March 2081. Having 56 years remaining we approximated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of fees.