On the balance of probabilities if you own a flat in Farnham Royal you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Farnham Royal can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
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 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.
Last October Jasper, came very close to the eighty-year threshold with the lease on his ground floor apartment in Farnham Royal. Having bought his property twenty years ago, the length of the lease was of no significance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Jasper extended the lease at the eleventh hour in March. Jasper and the landlord who owned the flat above ultimately agreed on the final figure of £6,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,100.
Last Christmas we were e-mailed by Dr Eli Davis , who completed a ground floor apartment in Farnham Royal in September 1997. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Similar homes in Farnham Royal with an extended lease were valued around £280,000. The average ground rent payable was £55 invoiced annually. The lease expired on 19 September 2103. Taking into account 77 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
In 2009 we were approached by Ms Chloe Wright who, having took over the lease of a basement flat in Farnham Royal in November 2008. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative flats in Farnham Royal with an extended lease were valued about £183,600. The average ground rent payable was £65 invoiced monthly. The lease expired on 27 June 2083. Having 57 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.