For anyone whose Farnham Royal home is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Farnham Royal leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the landlord of her studio apartment in Farnham Royal, Paige started the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension was concluded in March 2008. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were approached by Dr Leo Bertrand who, having was assigned a lease of a first floor apartment in Farnham Royal in August 2009. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Identical homes in Farnham Royal with an extended lease were valued around £250,000. The average amount of ground rent was £50 billed per annum. The lease ended in 2095. Given that there were 69 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Christmas we were contacted by Mr and Mrs. S Davis , who completed a newly refurbished apartment in Farnham Royal in April 1997. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar properties in Farnham Royal with an extended lease were valued about £290,000. The average amount of ground rent was £60 billed yearly. The lease elapsed in 2106. Considering the 80 years unexpired we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.