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 set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Fenstanton. Clearly, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Fenstanton have the legal entitlement to extend the lease for an additional ninety years under statute. Do give careful deliberation before putting off your Fenstanton lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Fenstanton can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 Fenstanton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Connor, came perilously close to the eighty-year threshold with the lease on his studio flat in Fenstanton. Having bought his flat two decades ago, the lease term was of no importance. Thankfully, he recognised he would soon be paying way over the odds for a lease extension. Connor arranged for a lease extension just under the wire last September. Connor and the freeholder via the managing agents in the end agreed on an amount of £5,500 . If he not met the deadline, the amount would have gone up by at least £1,100.
Last year we were approach by Mr and Mrs. A Moreau , who owned a basement apartment in Fenstanton in June 2001. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable residencies in Fenstanton with an extended lease were in the region of £265,000. The average amount of ground rent was £50 invoiced per annum. The lease terminated on 27 June 2098. Having 73 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
In 2012 we were approached by Mr and Mrs. R Mercier who, having took over the lease of a basement flat in Fenstanton in October 1996. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative properties in Fenstanton with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 billed yearly. The lease terminated in 2078. Having 53 years left we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of fees.