The only way is down when it comes to Farnham Royal lease terms. Farnham Royal leaseholds that have a remaining term shorter than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will increase.
It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Lease extensions in Farnham Royal can be a difficult process. We recommend you secure professional help from a conveyancer 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 in-depth market knowledge 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.
Off the back of protracted correspondence with the landlord of her ground floor apartment in Farnham Royal, Courtney commenced the lease extension process as the eighty year threshold was fast approaching. The legal work was finalised in April 2012. The landlord’s fees were negotiated to less than 500 GBP.
Last Christmas we were contacted by Ms Imogen Williams , who completed a one bedroom flat in Farnham Royal in November 2003. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Comparable premises in Farnham Royal with a long lease were valued about £261,600. The mid-range ground rent payable was £60 billed yearly. The lease termination date was on 6 June 2078. Taking into account 52 years remaining we calculated the premium to the landlord for the lease extension to be within £39,000 and £45,000 plus fees.
Last Summer we were phoned by Mr and Mrs. N Patel , who was assigned a lease of a one bedroom flat in Farnham Royal in July 2005. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar residencies in Farnham Royal with a long lease were valued around £218,000. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed on 10 February 2089. Given that there were 63 years left we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of costs.