For anyone whose Farnham Royal property is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Farnham Royal can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in this area.
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 in-depth market knowledge 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.
Off the back of lengthy discussions with the freeholder of her two bedroom apartment in Farnham Royal, Harriet commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction completed in January 2015. The freeholder’s costs were negotiated to approximately 700 GBP.
Mr Jacob Gunderson took over the lease of a one bedroom flat in Farnham Royal in May 2011. The question was if we could approximate the price would be to extend the lease by an additional years. Comparative homes in Farnham Royal with a long lease were valued about £208,200. The average ground rent payable was £65 invoiced every twelve months. The lease concluded on 3 October 2087. Taking into account 61 years left we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.
In 2013 we were approached by Dr Kai Smith who, having purchased a newly refurbished apartment in Farnham Royal in April 2005. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable residencies in Farnham Royal with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 invoiced monthly. The lease finished on 7 March 2098. Considering the 72 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.