Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Fowey. Inevitably, the period of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Fowey have the right to extend the lease for an additional 90 years in accordance with statute. Do give careful attention before putting off your Fowey lease extension. Putting off the cost now simply increases the price you will eventually have to pay to extend your lease
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a freeholder in Fowey,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fowey valuers.
Off the back of protracted discussions with the freeholder of her garden flat in Fowey, Lucy started the lease extension process as the 80 year mark was fast coming. The transaction was concluded in April 2012. The freeholder’s fees were restricted to a tad over 450 GBP.
In 2010 we were phoned by Mr N Lefebvre who, having was assigned a lease of a studio apartment in Fowey in January 2001. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar premises in Fowey with an extended lease were worth £218,000. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed on 6 April 2086. Taking into account 63 years remaining we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of professional charges.
Last October we were phoned by Dr Rory Collins , who purchased a recently refurbished flat in Fowey in April 2000. The question was if we could approximate the price could be for a 90 year lease extension. Comparative residencies in Fowey with 100 year plus lease were worth £265,000. The average ground rent payable was £55 collected monthly. The lease end date was in 2097. Having 74 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.