Fallowfield leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Fallowfield will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and steps to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage 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 |
| Yorkshire 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. |
Lease extensions in Fallowfield can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 a wealth of experience procuring Fallowfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted discussions with the freeholder of her ground floor apartment in Fallowfield, Robyn commenced the lease extension process as the eighty year mark was fast approaching. The legal work completed in August 2011. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were approached by Mr and Mrs. N Moore who, having was assigned a lease of a ground floor apartment in Fallowfield in September 2006. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Fallowfield with an extended lease were valued about £260,000. The average amount of ground rent was £50 invoiced yearly. The lease came to a finish on 24 March 2098. Considering the 72 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
In 2013 we were phoned by Ms Ellie Kelly who, having was assigned a lease of a one bedroom apartment in Fallowfield in August 2002. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar homes in Fallowfield with 100 year plus lease were valued about £261,600. The average ground rent payable was £60 collected yearly. The lease elapsed in 2078. Considering the 52 years unexpired we calculated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including costs.