Fairlop 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 becomes more expensive. Most owners of residential leasehold property in Fairlop enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Fairlop you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Fairlop with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
The lawyers that we work with handle Fairlop lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After unsuccessful discussions with the freeholder of her garden apartment in Fairlop, Laura started the lease extension process just as her lease was approaching the all-important eighty-year deadline. The transaction completed in March 2015. The landlord’s charges were negotiated to approximately 700 GBP.
In 2012 we were phoned by Dr P Hall who, having took over the lease of a ground floor flat in Fairlop in April 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparative properties in Fairlop with a long lease were valued around £200,800. The mid-range amount of ground rent was £65 billed annually. The lease elapsed in 2086. Considering the 60 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including expenses.
An example of a Lease Extension matter before the tribunal for a Fairlop property is 104 Coventry Road in July 2014. The Tribunal determined that the lease extension permium should be £22,896.15 This case related to 1 flat. The unexpired residue of the current lease was 60.29 years.