Fenny Stratford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Fenny Stratford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Fenny Stratford you should check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Fenny Stratford with in excess of 100 years unexpired on the lease are sometimes 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| 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. |
Using our service gives you enhanced control over the value of your Fenny Stratford leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her garden apartment in Fenny Stratford, Natasha started the lease extension process as the 80 year mark was swiftly nearing. The lease extension completed in September 2013. The landlord’s charges were kept to an absolute minimum.
In 2014 we were phoned by Dr G Lewis who, having took over the lease of a ground floor apartment in Fenny Stratford in January 2012. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative residencies in Fenny Stratford with an extended lease were valued around £200,000. The average ground rent payable was £50 invoiced annually. The lease lapsed on 28 November 2104. Given that there were 78 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
In 2014 we were contacted by Mr and Mrs. V Laurent who, having purchased a purpose-built flat in Fenny Stratford in February 2010. The question was if we could approximate the premium would be for a 90 year lease extension. Comparative properties in Fenny Stratford with 100 year plus lease were worth £267,600. The average ground rent payable was £65 invoiced quarterly. The lease terminated on 12 August 2093. Considering the 67 years outstanding we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 not including expenses.