For anyone whose Fairwater flat is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold premises in Fairwater with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service will provide 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jackson was the the leasehold proprietor of a studio flat in Fairwater on the market with a lease of a few days over 72 years outstanding. Jackson on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. P Smith took over the lease of a purpose-built apartment in Fairwater in January 2000. The question was if we could estimate the premium could be for a 90 year lease extension. Comparable premises in Fairwater with a long lease were valued about £267,600. The average ground rent payable was £65 invoiced quarterly. The lease concluded in 2092. Given that there were 67 years left we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 not including fees.
Mr and Mrs. C Jones moved into a studio flat in Fairwater in February 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Fairwater with a long lease were valued about £206,200. The mid-range ground rent payable was £55 invoiced annually. The lease finished on 16 October 2081. Having 56 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.