Farnham Royal leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Farnham Royal will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Farnham Royal can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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.
Aiden owned a 2 bedroom apartment in Farnham Royal being marketed with a lease of fraction over fifty eight years outstanding. Aiden on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Aiden to invoke his statutory right. Aiden obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Mr and Mrs. I Gómez bought a purpose-built apartment in Farnham Royal in November 1998. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable properties in Farnham Royal with an extended lease were valued about £275,000. The average amount of ground rent was £55 collected annually. The lease elapsed in 2100. Considering the 76 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
Dr B Campbell moved into a ground floor apartment in Farnham Royal in November 2001. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical homes in Farnham Royal with a long lease were valued about £176,200. The mid-range ground rent payable was £65 invoiced annually. The lease terminated on 12 November 2080. Having 56 years unexpired we calculated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of expenses.