The nearer a domestic lease in Farnham Royal gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Most flat owners in Farnham Royal will qualify for this right; however a conveyancer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Farnham Royal with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold 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. |
| Birmingham Midshires | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Farnham Royal leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Riley owned a studio flat in Farnham Royal being sold with a lease of a few days over sixty years unexpired. Riley informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Riley to exercise his statutory right. Riley procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mrs B Watson acquired a purpose-built apartment in Farnham Royal in September 2011. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Farnham Royal with 100 year plus lease were valued about £264,000. The average ground rent payable was £60 invoiced monthly. The lease ran out in 2078. Taking into account 53 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including professional charges.
In 2010 we were contacted by Mrs F Khan who, having was assigned a lease of a studio flat in Farnham Royal in November 2008. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative properties in Farnham Royal with a long lease were valued about £220,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease lapsed in 2089. Given that there were 64 years left we approximated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including legals.