On the balance of probabilities where you own a flat in Fowey you actually own a long leasehold interest over your property
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 further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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 get guidance from a conveyancer 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 in-depth market knowledge 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.
Half a year ago Max, started to get close to the 80-year mark with the lease on his first floor apartment in Fowey. In buying his property two decades ago, the lease term was of no relevance. by good luck, he became aware that he would imminently be paying an escalated premium for Extending the lease. Max extended the lease just under the wire in January. Max and the landlord who owned the flat above eventually agreed on sum of £5,000 . If the lease had dipped to less than eighty years, the premium would have increased by a minimum £1,050.
Last Christmas we were called by Ms F Clarke , who was assigned a lease of a one bedroom flat in Fowey in July 2005. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Identical flats in Fowey with an extended lease were worth £275,000. The average ground rent payable was £55 collected every twelve months. The lease expiry date was in 2102. Given that there were 77 years remaining we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.
In 2012 we were called by Mrs J Kelly who, having purchased a one bedroom flat in Fowey in March 2006. The question was if we could approximate the premium could be for a ninety year lease extension. Comparable homes in Fowey with 100 year plus lease were valued about £183,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated on 18 June 2082. Given that there were 57 years left we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including fees.