Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Temple Fortune. Inevitably, the term of lease left shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Temple Fortune have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful deliberation before putting off your Temple Fortune lease extension. Holding off the cost now likely increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Temple Fortune can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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.
Oliver owned a conversion apartment in Temple Fortune being sold with a lease of a little over 59 years remaining. Oliver informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert advice and secured an acceptable resolution informally and sell the property.
Dr Finn Brooks took over the lease of a first floor flat in Temple Fortune in March 2010. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Temple Fortune with a long lease were worth £250,400. The average ground rent payable was £65 collected quarterly. The lease finished in 2089. Taking into account 64 years as a residual term we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including fees.
An example of a Lease Extension decision for a Temple Fortune premises 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 related to 1 flat. The number of years remaining on the existing lease(s) was 76 years.