Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Fairwater. Clearly, the period of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Fairwater have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Do give due consideration before delaying your Fairwater lease extension. Putting off that expense now only increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Fairwater can be a difficult process. We recommend you procure professional help from a lawyer 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 in-depth market knowledge 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.
Eli owned a conversion apartment in Fairwater being marketed with a lease of a little over 72 years remaining. Eli on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Eli to exercise his statutory right. Eli obtained expert advice and secured satisfactory resolution informally and sell the property.
Last month we were phoned by Ms M Martin , who acquired a basement apartment in Fairwater in August 2009. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Similar flats in Fairwater with a long lease were worth £216,000. The average amount of ground rent was £60 collected per annum. The lease concluded in 2084. Given that there were 58 years unexpired we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of costs.
In 2012 we were contacted by Mr and Mrs. I Harris who, having was assigned a lease of a one bedroom flat in Fairwater in June 1999. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Identical premises in Fairwater with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced monthly. The lease came to a finish on 8 September 2104. Taking into account 78 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.