The nearer a residential lease in Fulham nears to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond one hundred years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Fulham will qualify for this right; nevertheless a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Fulham with over one hundred years unexpired 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Fulham,the lease extension solicitors that we work with will always be willing 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.
Callum owned a high value flat in Fulham on the market with a lease of a little over 59 years left. Callum on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Callum to exercise his statutory right. Callum obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were contacted by Dr Nathan Hernández who, having completed a purpose-built flat in Fulham in November 1996. The question was if we could approximate the premium would be for a 90 year lease extension. Comparative properties in Fulham with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expired on 18 February 2105. Considering the 79 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
An example of a Freehold Enfranchisement decision 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 affected 2 flats. The unexpired residue of the current lease was 93 years and 162 years.