Chances are that if you own a flat in Farnham Royal you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Farnham Royal leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Toby, came perilously close to the eighty-year threshold with the lease on his two bedroom apartment in Farnham Royal. Having purchased his home 19 years previously, the length of the lease was of no interest. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. Toby extended the lease just under the wire in May. Toby and the landlord who owned the flat above subsequently settled on sum of £5,500 . If the lease had slipped lower than 80 years, the sum would have escalated by at least £1,025.
Last Spring we were contacted by Dr Danielle King , who moved into a recently refurbished apartment in Farnham Royal in April 2005. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar flats in Farnham Royal with 100 year plus lease were in the region of £232,800. The mid-range ground rent payable was £45 collected annually. The lease lapsed in 2091. Having 65 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
Mr Andrew Patel owned a first floor apartment in Farnham Royal in May 2010. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Farnham Royal with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £55 collected quarterly. The lease ended on 11 April 2102. Given that there were 76 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.