The value of Fairford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than eighty years
Leasehold residencies in Fairford with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Fairford can be a difficult process. We recommend you get guidance from a conveyancer 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 dealing with Fairford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley owned a studio flat in Fairford being marketed with a lease of a few days over 59 years left. Stanley on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
Last year we were phoned by Mrs L Roux , who completed a first floor apartment in Fairford in May 1999. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical homes in Fairford with 100 year plus lease were valued about £265,200. The mid-range amount of ground rent was £65 billed yearly. The lease ran out on 26 July 2091. Considering the 66 years left we estimated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 not including legals.
In 2011 we were called by Dr Nicole Garcia who, having owned a ground floor apartment in Fairford in September 1997. The question was if we could estimate the price could be to extend the lease by ninety years. Identical flats in Fairford with a long lease were worth £198,800. The mid-range amount of ground rent was £55 billed monthly. The lease came to a finish on 6 May 2080. Given that there were 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of legals.