There is no doubt about it a leasehold property in Fairfield is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner than later. Most flat owners in Fairfield will meet the qualifying criteria; however a conveyancer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Fairfield with more than one hundred 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Fairfield,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fairfield valuers.
In the wake of 9 months of protracted correspondence with the freeholder of her first floor apartment in Fairfield, Natasha initiated the lease extension process just as the lease was nearing the critical 80-year deadline. The legal work completed in August 2012. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were contacted by Mrs W Young who, having bought a one bedroom apartment in Fairfield in July 2010. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Fairfield with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 collected monthly. The lease finished in 2091. Considering the 65 years unexpired we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.
Ms Louise Walker acquired a first floor flat in Fairfield in January 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Similar flats in Fairfield with a long lease were valued about £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease came to a finish in 2080. Considering the 54 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 plus professional charges.