The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Fairfield may extend the lease for an additional ninety years under Leasehold Reform legislation. Please give careful consideration before delaying your Fairfield lease extension. Shelving that expense today simply increases the amount you will eventually have to pay to extend the lease.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Fairfield can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 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.
Trailing lengthy discussions with the freeholder of her one bedroom flat in Fairfield, Katherine started the lease extension process as the eighty year threshold was fast nearing. The lease extension completed in October 2013. The freeholder’s costs were negotiated to slightly above six hundred pounds.
In 2014 we were phoned by Mr and Mrs. M Mason who, having bought a purpose-built apartment in Fairfield in October 2012. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar premises in Fairfield with 100 year plus lease were worth £208,600. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed on 2 September 2083. Given that there were 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of costs.
In 2011 we were contacted by Ms Hannah Gray who, having owned a garden apartment in Fairfield in May 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Fairfield with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated in 2103. Taking into account 77 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.