When it comes to domestic leasehold premises in Fulham, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule 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. Leasehold owners in Fulham with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years outstanding, under the current Act the freeholder can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Fulham with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Fulham leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Nathan was the the leasehold proprietor of a high value flat in Fulham being marketed with a lease of just over 72 years unexpired. Nathan on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr Rory Rodríguez purchased a basement apartment in Fulham in February 2012. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable homes in Fulham with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 invoiced quarterly. The lease finished in 2082. Taking into account 56 years outstanding we calculated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal 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 term was 93 years and 162 years.