Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Fairbourne. Inevitably, the length of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Fairbourne have the right to extend the lease for an additional 90 years in accordance with legislation. Do give due consideration before putting off your Fairbourne lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
Engaging our service will provide you increased control over the value of your Fairbourne leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jason owned a high value flat in Fairbourne on the market with a lease of a little over 72 years outstanding. Jason informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jason to invoke his statutory right. Jason procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last month we were contacted by Dr U Nelson , who moved into a ground floor flat in Fairbourne in March 2006. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative properties in Fairbourne with 100 year plus lease were worth £264,000. The average ground rent payable was £60 collected monthly. The lease expired on 12 October 2079. Taking into account 53 years remaining we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of expenses.
Last Autumn we were called by Mr and Mrs. D Baker , who purchased a one bedroom flat in Fairbourne in January 2001. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical properties in Fairbourne with a long lease were worth £218,000. The average ground rent payable was £45 billed per annum. The lease concluded on 2 March 2089. Taking into account 63 years unexpired we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 plus professional charges.