When it comes to domestic leasehold property in Fairfield, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years left. Leasehold owners in Fairfield with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has less than 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property 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 equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 obtain professional help from a lawyer and valuer 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 a wealth of experience 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 recent months Edward, came perilously near to the 80-year mark with the lease on his two bedroom apartment in Fairfield. In buying his home two decades ago, the lease term was of minimal concern. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Edward was able to extend his lease at the eleventh hour in March. Edward and the freeholder via the management company ultimately agreed on sum of £5,500 . If the lease had dipped below eighty years, the amount would have become more exhorbitant by a minimum £875.
Mr and Mrs. P Pérez owned a studio flat in Fairfield in March 1997. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical premises in Fairfield with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 collected per annum. The lease concluded in 2092. Having 67 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus expenses.
Dr Harrison Clark purchased a first floor apartment in Fairfield in January 2009. The question was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparable properties in Fairfield with an extended lease were valued about £201,200. The mid-range amount of ground rent was £55 collected per annum. The lease finished on 4 April 2081. Taking into account 56 years left we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including fees.