The only way is down when it comes to Fulham lease terms. Fulham properties that have a residual term lower than 80 years will drop in value at a rapid rate, and the cost to extend your lease will increase.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | 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. |
The lawyers that we work with handle Fulham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Seth was the the leasehold owner of a studio apartment in Fulham being marketed with a lease of fraction over 61 years left. Seth on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Seth to invoke his statutory right. Seth obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Last April we were called by Mr E Cooper , who was assigned a lease of a first floor flat in Fulham in April 2006. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Identical residencies in Fulham with a long lease were valued around £246,800. The average amount of ground rent was £60 invoiced monthly. The lease lapsed in 2076. Taking into account 50 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Fulham flat is 66 and 66a Wardo Avenue in November 2012. The Tribunal determined that the sum of £8,048 is payable by the Applicants in respect of the price for the freehold of the property This case affected 2 flats. The unexpired term was 93 years and 162 years.