Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Fenny Stratford. Clearly, the period of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the flat or house has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Fenny Stratford have the right to extend the lease for a further 90 years in accordance with statute. You should give careful attention before delaying your Fenny Stratford lease extension. Putting off that expense now only increases the price you will ultimately incur for a lease extension
Leasehold residencies in Fenny Stratford with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Fenny Stratford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fenny Stratford valuers.
Following protracted negotiations with the freeholder of her leasehold flat in Fenny Stratford, Jessica initiated the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension was finalised in November 2012. The landlord’s charges were restricted to a tad over 650 pounds.
In 2014 we were contacted by Mr Reuben Collins who, having moved into a garden apartment in Fenny Stratford in August 1996. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable residencies in Fenny Stratford with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded in 2101. Given that there were 77 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
Last Winter we were contacted by Mrs U Kelly , who purchased a purpose-built apartment in Fenny Stratford in January 2005. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Identical homes in Fenny Stratford with an extended lease were in the region of £265,200. The average ground rent payable was £65 billed per annum. The lease termination date was on 5 April 2090. Considering the 66 years left we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus professional charges.