Fairlop leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Fairlop enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Fairlop you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Fairlop with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Fairlop can be a difficult process. We recommend you get 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 procuring Fairlop lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Toby, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Fairlop. Having bought his home two decades ago, the length of the lease was of no concern. Luckily, he recognised he would imminently be paying an escalated premium for a lease extension. Toby arranged for a lease extension just under the wire in January. Toby and the freeholder via the management company eventually agreed on a premium of £6,000 . If the lease had slid to less than eighty years, the sum would have become more exhorbitant by at least £950.
Mr E Young was assigned a lease of a garden apartment in Fairlop in April 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar homes in Fairlop with a long lease were worth £264,000. The mid-range amount of ground rent was £60 collected yearly. The lease elapsed in 2079. Given that there were 53 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including fees.
An example of a Lease Extension matter before the tribunal for a Fairlop premises is 104 Coventry Road in July 2014. The Tribunal determined that the lease extension permium should be £22,896.15 This case affected 1 flat. The unexpired term was 60.29 years.