Stop! Your Lease Extension in Fowey Could Be FREE

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Many leaseholders in Fowey are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Fowey has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should start your Fowey lease extension

Main reasons to commence your Fowey lease extension today:

Increase your lease and increase your Fowey property value

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Fowey. Clearly, the length of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Fowey have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give due attention before delaying your Fowey lease extension. Holding off that expense now likely increases the price you will eventually incur for a lease extension

Fowey property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions will not issue a mortgage with a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with less than 70 years left to run - although this varies from lender to lender. A purchaser will no doubt find it difficult in obtaining a mortgage and this could result in your Fowey property being difficult to sell or remortgage.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
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.
Halifax Minimum 70 years from the date of the mortgage.
Santander

If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest.

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.
 


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.

What makes us experts in Fowey lease extensions?

Engaging our service gives you better control over the value of your Fowey leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Fowey Lease Extension Example Cases:

Luca, Fowey, Cornwall,

Luca was the the leasehold proprietor of a studio apartment in Fowey on the market with a lease of a few days over sixty years outstanding. Luca on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Luca to invoke his statutory right. Luca obtained expert legal guidance and secured satisfactory resolution informally and sell the property.

Fowey case:

Mr N Clarke owned a purpose-built flat in Fowey in August 2004. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical premises in Fowey with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 billed every twelve months. The lease lapsed in 2103. Given that there were 77 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.

Fowey case:

In 2012 we were contacted by Dr T Vincent who, having moved into a one bedroom apartment in Fowey in May 2003. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical premises in Fowey with a long lease were in the region of £183,600. The average ground rent payable was £65 billed yearly. The lease came to a finish in 2083. Considering the 57 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus expenses.