There is no doubt about it a leasehold property in Fallowfield is a wasting asset as a result of the shortening lease. If the lease has, beyond 100 years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Fallowfield will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder 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.
Last October Cameron, came seriously close to the eighty-year mark with the lease on his two bedroom flat in Fallowfield. Having bought his property 19 years ago, the unexpired term was of little relevance. by good luck, he realised he would imminently be paying an inflated amount for Extending the lease. Cameron was able to extend his lease just under the wire in September. Cameron and the freeholder via the management company ultimately agreed on the final figure of £5,000 . If he not met the deadline, the price would have gone up by a minimum £950.
Mrs G Vincent moved into a basement flat in Fallowfield in February 2002. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable homes in Fallowfield with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease elapsed in 2095. Considering the 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
Last month we were called by Ms V Ramírez , who was assigned a lease of a garden apartment in Fallowfield in August 2003. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative homes in Fallowfield with a long lease were in the region of £290,000. The average amount of ground rent was £60 billed annually. The lease concluded in 2105. Given that there were 80 years left we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.