Fallowfield leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. Flat owners in Fallowfield will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some cases you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Fallowfield can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 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.
Jack was the the leasehold proprietor of a studio flat in Fallowfield being marketed with a lease of a few days over fifty eight years remaining. Jack informally approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jack to invoke his statutory right. Jack obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2012 we were phoned by Dr Isaac Bailey who, having owned a newly refurbished flat in Fallowfield in January 2001. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical premises in Fallowfield with a long lease were in the region of £275,000. The average ground rent payable was £55 billed quarterly. The lease terminated in 2102. Having 76 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Dr Adam Wright acquired a one bedroom flat in Fallowfield in April 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Similar residencies in Fallowfield with 100 year plus lease were valued around £181,200. The average ground rent payable was £65 collected quarterly. The lease ended on 26 May 2082. Taking into account 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 plus fees.