Fallowfield residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Fallowfield leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the freeholder of her two bedroom apartment in Fallowfield, Yasmin started the lease extension process just as the lease was approaching the crucial 80-year mark. The transaction was finalised in February 2007. The freeholder’s charges were restricted to about 700 pounds.
Last Summer we were approach by Mr and Mrs. O Roux , who took over the lease of a purpose-built flat in Fallowfield in March 2009. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar residencies in Fallowfield with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 invoiced annually. The lease ran out in 2099. Taking into account 75 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Mr and Mrs. T Richardson moved into a newly refurbished apartment in Fallowfield in October 2000. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Fallowfield with 100 year plus lease were in the region of £168,800. The average ground rent payable was £60 invoiced every twelve months. The lease concluded on 25 August 2079. Having 55 years remaining we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.