For anyone whose Fairwater property is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Fairwater can be a difficult process. We recommend you procure 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 Fairwater 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 Harvey, came precariously close to the eighty-year mark with the lease on his ground floor apartment in Fairwater. Having bought his home 18 years previously, the lease term was of minimal bearing. Thankfully, he realised he would soon be paying way over the odds for Extending the lease. Harvey arranged for a lease extension just in the nick of time in March. Harvey and the landlord who owned the flat above eventually settled on a premium of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,150.
Mrs R Kelly completed a basement flat in Fairwater in January 2012. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable homes in Fairwater with an extended lease were in the region of £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease end date was in 2091. Having 70 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.
In 2014 we were called by Mr and Mrs. R Davies who, having moved into a purpose-built apartment in Fairwater in June 2010. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative residencies in Fairwater with an extended lease were worth £223,400. The average amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 11 February 2080. Given that there were 59 years outstanding we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 plus expenses.