For anyone whose Fallowfield home is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Fallowfield can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.
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 in-depth market knowledge 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.
Subsequent to protracted negotiations with the landlord of her studio flat in Fallowfield, Sian initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The legal work was finalised in April 2006. The landlord’s charges were restricted to slightly above 600 GBP.
In 2012 we were e-mailed by Mr and Mrs. J Fournier who, having took over the lease of a ground floor apartment in Fallowfield in March 2006. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Identical residencies in Fallowfield with an extended lease were in the region of £200,800. The average amount of ground rent was £65 invoiced annually. The lease terminated on 13 April 2086. Given that there were 60 years unexpired we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including expenses.
Mr Gabriel Bailey was assigned a lease of a first floor flat in Fallowfield in February 2004. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical residencies in Fallowfield with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease ran out in 2097. Considering the 71 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.