It’s an underpublicised truth that a Fallowfield residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Fallowfield property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. Most flat owners in Fallowfield will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | 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 also be not less than 75 years at the outset 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 |
| Yorkshire 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. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful discussions with the landlord of her leasehold apartment in Fallowfield, Jordan commenced the lease extension process as the 80 year threshold was rapidly approaching. The legal work was finalised in May 2015. The landlord’s fees were restricted to approximately 650 pounds.
Last Summer we were phoned by Mr and Mrs. B Adams , who completed a studio apartment in Fallowfield in November 2000. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparative flats in Fallowfield with a long lease were worth £210,600. The mid-range ground rent payable was £65 collected annually. The lease elapsed in 2088. Given that there were 62 years unexpired we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus fees.
Last Winter we were contacted by Mr and Mrs. M Girard , who bought a ground floor flat in Fallowfield in March 2010. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Similar premises in Fallowfield with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 billed annually. The lease ran out on 12 August 2098. Having 72 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.