Fairbourne leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Fairbourne will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Fairbourne with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Retaining our service gives you better control over the value of your Fairbourne leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy negotiations with the freeholder of her two bedroom apartment in Fairbourne, Robyn commenced the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The lease extension completed in March 2005. The freeholder’s fees were negotiated to below 450 pounds.
In 2012 we were called by Dr T Moreau who, having moved into a first floor flat in Fairbourne in February 2002. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical homes in Fairbourne with an extended lease were worth £198,400. The mid-range amount of ground rent was £65 collected yearly. The lease concluded on 27 October 2085. Given that there were 59 years left we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus fees.
In 2014 we were e-mailed by Mrs Aimee Thompson who, having was assigned a lease of a recently refurbished apartment in Fairbourne in February 2005. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative premises in Fairbourne with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 collected annually. The lease concluded in 2096. Having 70 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.