With a long leasehold property in Fulham, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Residents in Fulham with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. When a lease has under 80 years outstanding, under the relevant legislation the freeholder can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Fulham with in excess of 100 years remaining 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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| 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. |
Retaining our service gives you better control over the value of your Fulham leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Aarav, started to get close to the 80-year mark with the lease on his purpose- built flat in Fulham. Having bought his flat two decades ago, the length of the lease was of minimal bearing. by good luck, he became aware that he needed to take steps soon on Extending the lease. Aarav was able to extend his lease just in the nick of time in April. Aarav and the freeholder eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the price would have gone up by a minimum £1,025.
Mr and Mrs. U Michel was assigned a lease of a one bedroom apartment in Fulham in August 2007. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Fulham with a long lease were in the region of £186,000. The average ground rent payable was £65 invoiced monthly. The lease expired on 22 April 2083. Having 58 years outstanding we approximated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal 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 related to 2 flats. The unexpired term was 93 years and 162 years.