Fowey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Fowey residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Fowey you should investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Fowey flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Fowey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Austin owned a 2 bedroom flat in Fowey on the market with a lease of a few days over 72 years outstanding. Austin informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Austin to exercise his statutory right. Austin procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Last Autumn we were e-mailed by Dr R Edwards , who moved into a one bedroom flat in Fowey in November 1999. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Identical residencies in Fowey with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish on 28 October 2096. Given that there were 70 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Dr R Watson was assigned a lease of a first floor flat in Fowey in April 1999. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical properties in Fowey with 100 year plus lease were valued about £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease ran out in 2076. Given that there were 50 years outstanding we calculated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of costs.