The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Fulham can extend the lease for an additional 90 years under legislation. Please give careful consideration before delaying your Fulham lease extension. Shelving the costs today simply escalates the amount you will ultimately be required to pay for a lease extension.
It is generally accepted that a property with over 100 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 residence will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Fulham can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Fulham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the landlord of her garden apartment in Fulham, Bethany initiated the lease extension process as the eighty year mark was swiftly nearing. The legal work completed in April 2012. The freeholder’s fees were negotiated to about 700 pounds.
Last year we were e-mailed by Dr Lily Morgan , who acquired a purpose-built apartment in Fulham in August 2001. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Identical residencies in Fulham with a long lease were in the region of £255,000. The average ground rent payable was £50 billed quarterly. The lease ended in 2097. Given that there were 71 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
An example of a Freehold Enfranchisement case 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 related to 2 flats. The unexpired term as at the valuation date was 93 years and 162 years.