When it comes to residential leasehold premises in Fairbourne, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Leasehold owners in Fairbourne with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. When the lease term has below eighty years left, under the current legislation the freeholder can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Fairbourne with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Lease extensions in Fairbourne can be a difficult process. We recommend you procure guidance 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 procuring Fairbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Owen, started to get close to the 80-year mark with the lease on his first floor apartment in Fairbourne. Having bought his property two decades ago, the lease term was of minimal bearing. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Owen extended the lease just in the nick of time in September. Owen and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If the lease had fallen to less than eighty years, the sum would have escalated by a minimum £1,000.
In 2014 we were called by Mr S Jackson who, having took over the lease of a one bedroom flat in Fairbourne in November 2004. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative residencies in Fairbourne with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease terminated in 2104. Having 79 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.
In 2012 we were e-mailed by Mr and Mrs. M Cook who, having moved into a one bedroom flat in Fairbourne in April 2010. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Identical homes in Fairbourne with 100 year plus lease were in the region of £193,400. The mid-range amount of ground rent was £65 collected yearly. The lease came to a finish in 2084. Having 59 years outstanding we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus expenses.