Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Fallowfield. Inevitably, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Fallowfield have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. Do give careful attention before delaying your Fallowfield lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| 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. |
| 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. |
The conveyancing solicitors 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 lawyer we work with provide it.
In 2014 Jake, started to get near to the 80-year mark with the lease on his leasehold flat in Fallowfield. Having bought his home two decades ago, the length of the lease was of no significance. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Jake arranged for a lease extension at the eleventh hour last March. Jake and the freeholder via the management company ultimately settled on a premium of £5,000 . If he failed to meet the deadline, the figure would have become more exhorbitant by at least £1,150.
In 2009 we were called by Mrs Ella Harris who, having moved into a one bedroom apartment in Fallowfield in May 2009. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Similar properties in Fallowfield with 100 year plus lease were worth £250,000. The average ground rent payable was £50 billed annually. The lease ran out on 12 July 2094. Given that there were 68 years left we approximated the premium to the landlord for the lease extension to be within £10,500 and £12,000 not including costs.
Last May we were e-mailed by Mr E Davis , who purchased a newly refurbished flat in Fallowfield in October 1996. The question was if we could approximate the premium could be for a ninety year lease extension. Similar premises in Fallowfield with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease ended on 28 April 2105. Given that there were 79 years left we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.