Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Farnham Royal. Inevitably, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Farnham Royal have the right to extend the lease for a further ninety years under Leasehold Reform legislation. You should give due consideration before delaying your Farnham Royal lease extension. Putting off the cost now only increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander |
Lease extensions in Farnham Royal can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 dealing with Farnham Royal lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Seth owned a studio apartment in Farnham Royal being sold with a lease of fraction over 61 years outstanding. Seth on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Dr Georgia Martin completed a studio apartment in Farnham Royal in June 2009. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar flats in Farnham Royal with 100 year plus lease were valued about £260,000. The average ground rent payable was £50 collected quarterly. The lease expired in 2098. Considering the 72 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
In 2012 we were phoned by Dr Catherine Morris who, having acquired a studio apartment in Farnham Royal in August 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Similar homes in Farnham Royal with 100 year plus lease were worth £261,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expired on 22 May 2078. Having 52 years left we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 plus professional charges.