There is no doubt about it a leasehold property in Fallowfield is a wasting asset as a result of the diminishing lease term. If the residual term has, over one hundred years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Fallowfield will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Fallowfield can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
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 dealing with Fallowfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter owned a studio apartment in Fallowfield on the market with a lease of fraction over 72 years unexpired. Dexter on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Dexter to invoke his statutory right. Dexter procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were phoned by Mr and Mrs. R López who, having bought a basement apartment in Fallowfield in October 2000. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Fallowfield with an extended lease were in the region of £181,200. The mid-range amount of ground rent was £65 collected annually. The lease end date was on 10 November 2082. Taking into account 56 years remaining we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of professional charges.
Last Winter we were approach by Mr and Mrs. F Norbert , who moved into a recently refurbished flat in Fallowfield in May 1998. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Identical premises in Fallowfield with a long lease were worth £242,600. The average amount of ground rent was £45 billed per annum. The lease ran out on 8 September 2093. Taking into account 67 years remaining we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of fees.