There is no doubt about it a leasehold flat or house in Fallowfield is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Fallowfield will qualify for this right; nevertheless a conveyancer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Fallowfield,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fallowfield valuers.
Trailing lengthy negotiations with the landlord of her purpose-built flat in Fallowfield, Rachael started the lease extension process as the eighty year deadline was quickly nearing. The transaction was concluded in April 2008. The landlord’s charges were negotiated to under 450 pounds.
In 2013 we were approached by Dr Y Bonnet who, having owned a first floor apartment in Fallowfield in July 1996. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical residencies in Fallowfield with a long lease were in the region of £290,000. The average amount of ground rent was £60 collected quarterly. The lease ran out in 2106. Given that there were 80 years unexpired we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.
Last Autumn we were e-mailed by Mr C Thomas , who acquired a studio flat in Fallowfield in October 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Fallowfield with a long lease were worth £200,800. The average ground rent payable was £65 billed monthly. The lease came to a finish in 2086. Given that there were 60 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of costs.