Falconwood leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease drops under eighty years - otherwise a higher premium will be due. Flat owners in Falconwood will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with procure Falconwood 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 conveyancer we work with provide it.
Off the back of lengthy discussions with the landlord of her one bedroom flat in Falconwood, Olivia initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The transaction completed in November 2011. The landlord’s fees were restricted to less than 600 pounds.
In 2014 we were called by Ms Ashleigh Jones who, having bought a purpose-built apartment in Falconwood in February 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Falconwood with a long lease were worth £210,000. The mid-range ground rent payable was £50 billed every twelve months. The lease termination date was in 2105. Considering the 80 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
An example of a Lease Extension decision for a Falconwood premises is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case related to 1 flat.