The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Fulham can extend the lease for an additional 90 years under Leasehold Reform legislation. Please think carefully before delaying your Fulham lease extension. Postponing that expense today simply escalates the amount you will eventually have to pay to extend the lease.
Leasehold residencies in Fulham with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Fulham,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 Fulham valuers.
Trailing unsuccessful negotiations with the freeholder of her ground floor flat in Fulham, Gemma started the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction was concluded in March 2005. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were e-mailed by Mr and Mrs. S González who, having purchased a garden flat in Fulham in March 2007. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative flats in Fulham with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 billed yearly. The lease finished on 26 July 2088. Having 62 years remaining we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus professional charges.
An example of a Freehold Enfranchisement case for a Fulham premises 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 was in relation to 2 flats. The unexpired term as at the valuation date was 93 years and 162 years.