The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Fenstanton may extend the lease for an additional 90 years in accordance with legislation. Do think carefully before delaying your Fenstanton lease extension. Putting off that expense now simply increases the amount you will eventually be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you enhanced control over the value of your Fenstanton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jake owned a conversion flat in Fenstanton on the market with a lease of just over fifty eight years left. Jake informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Jake to invoke his statutory right. Jake obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last Christmas we were phoned by Mr Toby David , who was assigned a lease of a one bedroom flat in Fenstanton in April 2006. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical flats in Fenstanton with an extended lease were worth £200,800. The average amount of ground rent was £65 billed per annum. The lease ran out in 2086. Given that there were 60 years outstanding we approximated the premium to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of expenses.
Last Spring we were called by Dr M Kelly , who moved into a studio apartment in Fenstanton in April 2009. The dilemma was if we could estimate the price could be for a 90 year lease extension. Similar residencies in Fenstanton with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish in 2097. Given that there were 71 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.