Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Temple Fortune. Clearly, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Temple Fortune have the legal entitlement to extend the lease for an additional 90 years under legislation. You should give careful deliberation before delaying your Temple Fortune lease extension. Holding off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
Lease extensions in Temple Fortune can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Temple Fortune lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
William owned a studio flat in Temple Fortune being marketed with a lease of just over 72 years outstanding. William informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were William to invoke his statutory right. William 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.
Last year we were phoned by Mr and Mrs. U Brown , who completed a one bedroom apartment in Temple Fortune in April 1997. The question was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Similar properties in Temple Fortune with 100 year plus lease were valued about £267,600. The mid-range amount of ground rent was £65 collected annually. The lease termination date was in 2093. Taking into account 67 years remaining we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus fees.
An example of a Lease Extension case for a Temple Fortune property is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case was in relation to 1 flat. The unexpired residue of the current lease was 76 years.