Fulwell leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. Flat owners in Fulwell will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not be entitled. There are also strict deadlines and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years remaining 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 decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Fulwell leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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.
Last October Blake, started to get close to the eighty-year mark with the lease on his purpose- built flat in Fulwell. In buying his property 19 years previously, the length of the lease was of no significance. Luckily, he noticed he needed to take action soon on a lease extension. Blake arranged for a lease extension just under the wire last September. Blake and the freeholder subsequently settled on a premium of £5,000 . If he not met the deadline, the sum would have escalated by a minimum £1,050.
In 2009 we were contacted by Mr and Mrs. B Leroy who, having moved into a purpose-built flat in Fulwell in October 1997. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Fulwell with an extended lease were worth £260,000. The average amount of ground rent was £50 invoiced per annum. The lease lapsed in 2098. Considering the 72 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
An example of a Lease Extension decision for a Fulwell flat is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case related to 1 flat. The unexpired term as at the valuation date was 60.45 years.