It’s an underpublicised truth that a Fairfield residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Fairfield property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Fairfield will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold residencies in Fairfield with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Fairfield,the lease extension lawyers that we work with will always be willing 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 recent months George, started to get near to the 80-year mark with the lease on his garden flat in Fairfield. In buying his home two decades ago, the length of the lease was of little importance. Fortunately, he realised he would imminently be paying way over the odds for Extending the lease. George arranged for a lease extension just in the nick of time last April. George and the freeholder via the management company subsequently agreed on an amount of £5,500 . If he failed to meet the deadline, the price would have escalated by a minimum £875.
Last Spring we were phoned by Mrs Rhiannon Leroy , who bought a newly refurbished flat in Fairfield in April 2007. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative premises in Fairfield with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease expired in 2103. Considering the 77 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Mr and Mrs. I Garcia took over the lease of a studio apartment in Fairfield in February 1997. The question was if we could estimate the premium could be to extend the lease by an additional years. Comparative flats in Fairfield with a long lease were valued around £260,200. The average ground rent payable was £65 invoiced quarterly. The lease end date was on 15 March 2092. Given that there were 66 years unexpired we approximated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of fees.