Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Fairbourne. Inevitably, the length of lease left shortens over time. This is often overlooked and only becomes a problem when the property needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Fairbourne have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give careful attention before delaying your Fairbourne lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Fairbourne can be a difficult process. We recommend you procure guidance from a conveyancer 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 a wealth of experience 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.
Last October Seth, came critically near to the eighty-year threshold with the lease on his studio apartment in Fairbourne. In buying his flat twenty years previously, the length of the lease was of little bearing. Luckily, he recognised he would soon be paying an inflated amount for a lease extension. Seth was able to extend his lease just in the nick of time last May. Seth and the freeholder via the management company ultimately agreed on an amount of £5,000 . If he not met the deadline, the figure would have increased by at least £925.
Last year we were approach by Mr and Mrs. O Flores , who took over the lease of a one bedroom flat in Fairbourne in October 2001. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Identical premises in Fairbourne with 100 year plus lease were in the region of £237,600. The mid-range ground rent payable was £45 invoiced per annum. The lease terminated in 2092. Considering the 67 years remaining we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 plus costs.
Mr and Mrs. H Martinez moved into a studio apartment in Fairbourne in March 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical properties in Fairbourne with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 collected yearly. The lease came to a finish in 2103. Considering the 78 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.