The value of Fallowfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than eighty years
Leasehold premises in Fallowfield with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better 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 want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jacob, started to get near to the 80-year threshold with the lease on his studio flat in Fallowfield. Having purchased his property twenty years ago, the unexpired term was of little concern. Fortunately, he realised he would imminently be paying an escalated premium for a lease extension. Jacob was able to extend his lease just under the wire last January. Jacob and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If he failed to meet the deadline, the amount would have gone up by at least £975.
Dr Samuel Stewart moved into a one bedroom flat in Fallowfield in January 1998. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative residencies in Fallowfield with a long lease were worth £218,000. The average amount of ground rent was £45 collected monthly. The lease ran out on 21 July 2088. Having 63 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including fees.
In 2010 we were approached by Mr and Mrs. R David who, having took over the lease of a newly refurbished apartment in Fallowfield in April 1999. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative properties in Fallowfield with a long lease were worth £265,000. The average amount of ground rent was £50 billed monthly. The lease ran out on 23 June 2099. Having 74 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.