Unfortunately that a Fairwater residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Fairwater property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. Most flat owners in Fairwater will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Fairwater with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you enhanced control over the value of your Fairwater leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her purpose-built apartment in Fairwater, Zoe initiated the lease extension process as the 80 year deadline was swiftly nearing. The legal work completed in April 2013. The landlord’s charges were negotiated to about 600 GBP.
Last Winter we were contacted by Mr William Murphy , who owned a garden flat in Fairwater in April 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Fairwater with a long lease were worth £275,000. The average amount of ground rent was £65 billed quarterly. The lease ran out on 2 October 2093. Given that there were 68 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.
Last year we were contacted by Dr Courtney Cox , who owned a garden flat in Fairwater in June 2002. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative homes in Fairwater with 100 year plus lease were worth £208,600. The mid-range ground rent payable was £60 invoiced per annum. The lease elapsed in 2082. Taking into account 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including legals.