The market value of Fallowfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is less than 80 years
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly 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 decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Fallowfield 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.
After lengthy discussions with the landlord of her basement apartment in Fallowfield, Imogen started the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction completed in October 2015. The freeholder’s fees were restricted to a tad over five hundred pounds.
Last Winter we were phoned by Mr and Mrs. N Bertrand , who moved into a basement flat in Fallowfield in August 1995. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable homes in Fallowfield with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 billed annually. The lease ran out in 2079. Given that there were 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 not including expenses.
Last Summer we were phoned by Mrs Elizabeth Girard , who was assigned a lease of a one bedroom flat in Fallowfield in August 2000. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Identical premises in Fallowfield with an extended lease were valued around £225,400. The average ground rent payable was £45 collected annually. The lease end date was in 2090. Taking into account 64 years remaining we approximated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 plus costs.