Farnborough leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. Flat owners in Farnborough will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Farnborough with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Farnborough can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Farnborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Ibrahim, started to get near to the 80-year mark with the lease on his garden flat in Farnborough. Having bought his home two decades ago, the length of the lease was of minimal importance. by good luck, he recognised he needed to take steps soon on Extending the lease. Ibrahim was able to extend his lease just under the wire in September. Ibrahim and the freeholder via the managing agents eventually settled on an amount of £6,000 . If the lease had dropped below 80 years, the sum would have increased by at least £1,000.
Mr and Mrs. B Fournier was assigned a lease of a garden apartment in Farnborough in November 2010. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar premises in Farnborough with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease lapsed on 6 November 2097. Given that there were 71 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.
Last Autumn we were contacted by Mr and Mrs. R Wood , who purchased a first floor apartment in Farnborough in April 2004. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar premises in Farnborough with a long lease were in the region of £230,800. The mid-range amount of ground rent was £60 billed annually. The lease end date was on 27 April 2086. Taking into account 60 years left we calculated the premium to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.