Fulham leases on domestic deteriorating in value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Fulham will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Fulham with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Fulham,the lease extension solicitors that we work with will always be happy 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.
14 months ago Gabriel, came precariously near to the eighty-year threshold with the lease on his studio apartment in Fulham. Having bought his flat two decades ago, the lease term was of little relevance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Gabriel extended the lease just in the nick of time in July. Gabriel and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have escalated by at least £875.
In 2013 we were e-mailed by Mr and Mrs. W Patel who, having completed a garden flat in Fulham in October 1995. The question was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Identical properties in Fulham with a long lease were valued around £246,800. The average ground rent payable was £60 billed annually. The lease terminated on 24 February 2074. Given that there were 50 years left we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of legals.
An example of a Freehold Enfranchisement decision for a Fulham residence 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 lease term was 93 years and 162 years.