There is no doubt about it a leasehold flat or house in Fairwater is a wasting asset as a result of the shortening lease. Where the residual term has, over 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. Most flat owners in Fairwater will qualify for this right; nevertheless a conveyancer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Fairwater with over 100 years remaining 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 secure professional help from a conveyancing solicitor 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 a wealth of experience dealing with Fairwater lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the freeholder of her studio apartment in Fairwater, Robyn commenced the lease extension process as the eighty year mark was swiftly nearing. The transaction completed in January 2014. The landlord’s charges were kept to an absolute minimum.
Last Winter we were approach by Mr and Mrs. H Watson , who acquired a first floor apartment in Fairwater in November 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in Fairwater with a long lease were valued about £205,000. The average ground rent payable was £50 billed annually. The lease lapsed on 12 April 2104. Considering the 79 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.
Last Spring we were called by Mr and Mrs. E Flores , who took over the lease of a basement flat in Fairwater in February 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Fairwater with an extended lease were worth £275,000. The mid-range ground rent payable was £65 collected every twelve months. The lease terminated in 2093. Considering the 68 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.