The re-sale value of a leasehold property in Fairlop depends on how long the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that all matters can be finalised well before the 80 year threshold. Statute enables Fairlop qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Fairlop with more than 100 years unexpired 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Coventry Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Lease extensions in Fairlop can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 in-depth market knowledge dealing with Fairlop lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Daniel was the the leasehold owner of a 2 bedroom apartment in Fairlop on the market with a lease of a little over sixty years remaining. Daniel informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Daniel to invoke his statutory right. Daniel procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Mr and Mrs. R Morris acquired a one bedroom flat in Fairlop in June 2011. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative residencies in Fairlop with 100 year plus lease were worth £218,000. The average amount of ground rent was £45 billed yearly. The lease ended on 22 July 2089. Having 63 years remaining we estimated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of professional charges.
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 term was 60.29 years.