The market value of a leasehold property in Fowey depends on how many years the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the lease extension process when a lease still has 82 years to run so that a lease extension can be addressed ahead of the 80 year mark. Leasehold Reform legislation enables Fowey qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Fowey with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 valuer well versed in the legislation and lease extension process.
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 procuring Fowey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Jack, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Fowey. In buying his flat two decades ago, the lease term was of no interest. Thankfully, he noticed he needed to take action soon on Extending the lease. Jack arranged for a lease extension just ahead of time last August. Jack and the freeholder via the management company subsequently settled on an amount of £5,500 . If he not met the deadline, the amount would have increased by at least £1,125.
In 2011 we were e-mailed by Mr I Anderson who, having purchased a studio apartment in Fowey in April 2003. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable residencies in Fowey with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded in 2097. Given that there were 72 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
Last Autumn we were e-mailed by Dr P Hill , who took over the lease of a ground floor apartment in Fowey in August 2012. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in Fowey with a long lease were in the region of £256,600. The average amount of ground rent was £60 collected annually. The lease finished in 2077. Considering the 52 years unexpired we calculated the premium to the landlord to extend the lease to be between £39,000 and £45,000 not including fees.