Fairbourne leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Fairbourne will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some cases you may not qualify. There are also strict deadlines and formalities to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Fairbourne,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fairbourne valuers.
Subsequent to protracted negotiations with the landlord of her first floor apartment in Fairbourne, Jasmine initiated the lease extension process just as the lease was coming close to the critical 80-year deadline. The legal work completed in February 2011. The landlord’s charges were restricted to below 450 pounds.
Mr V Michel took over the lease of a recently refurbished apartment in Fairbourne in May 1998. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparable flats in Fairbourne with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 billed every twelve months. The lease ended on 26 June 2076. Having 51 years unexpired we estimated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including legals.
Last year we were phoned by Dr D Martinez , who acquired a first floor flat in Fairbourne in March 2009. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable flats in Fairbourne with 100 year plus lease were worth £210,600. The average ground rent payable was £45 collected monthly. The lease terminated on 10 January 2087. Having 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including expenses.