Fulwell leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Fulwell tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Fulwell you really ought to investigate if your lease has between 70 and 90 years left. There are good reasons why a Fulwell leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Fulwell with more than 100 years left 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Fulwell leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Ethan, came critically close to the 80-year threshold with the lease on his garden apartment in Fulwell. In buying his flat 18 years ago, the unexpired term was of minimal interest. Luckily, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Ethan extended the lease at the eleventh hour in January. Ethan and the freeholder via the management company in the end settled on the final figure of £5,000 . If the lease had dipped lower than 80 years, the price would have gone up by at least £1,075.
Mr K Robinson was assigned a lease of a newly refurbished flat in Fulwell in October 2007. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable premises in Fulwell with 100 year plus lease were valued about £250,000. The average ground rent payable was £50 invoiced annually. The lease finished in 2094. Having 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
An example of a Lease Extension decision for a Fulwell property 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 residue of the current lease was 60.45 years.