Fairfield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Fairfield residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Fairfield you really ought to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Fairfield flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Fairfield with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Fairfield can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 in-depth market knowledge dealing with Fairfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Samuel, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Fairfield. In buying his property twenty years ago, the length of the lease was of no relevance. Fortunately, he realised he needed to take action soon on Extending the lease. Samuel was able to extend his lease just in the nick of time last January. Samuel and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If the lease had fallen below eighty years, the figure would have gone up by at least £850.
In 2009 we were e-mailed by Ms Bethan Morgan who, having completed a recently refurbished flat in Fairfield in August 2007. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Fairfield with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 billed every twelve months. The lease ended in 2098. Given that there were 72 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Mr H Wright took over the lease of a first floor apartment in Fairfield in October 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Similar residencies in Fairfield with 100 year plus lease were worth £233,200. The average ground rent payable was £60 billed every twelve months. The lease ran out on 20 June 2087. Given that there were 61 years left we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including fees.