It’s a harsh truth that a Fairfield residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted 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 considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Fairfield will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
Lease extensions in Fairfield can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Fairfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted discussions with the freeholder of her leasehold flat in Fairfield, Stephanie commenced the lease extension process as the eighty year threshold was quickly coming. The legal work was concluded in March 2007. The freeholder’s costs were restricted to slightly above 500 pounds.
Last year we were called by Dr U Fournier , who owned a garden apartment in Fairfield in March 1996. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical properties in Fairfield with a long lease were in the region of £216,000. The average amount of ground rent was £60 billed yearly. The lease lapsed on 10 February 2084. Given that there were 58 years left we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including fees.
Mr N Cox purchased a newly refurbished flat in Fairfield in August 1995. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable flats in Fairfield with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected per annum. The lease ran out on 7 May 2104. Given that there were 78 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.