It’s an underpublicised truth that a Fakenham residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Fakenham property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Fakenham will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Fakenham with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Fakenham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fakenham valuers.
Half a year ago Eliot, started to get near to the eighty-year mark with the lease on his first floor flat in Fakenham. Having purchased his home 19 years ago, the length of the lease was of little interest. As luck would have it, he noticed he needed to take steps soon on a lease extension. Eliot was able to extend his lease at the eleventh hour last January. Eliot and the freeholder ultimately settled on the final figure of £5,500 . If he not met the deadline, the figure would have escalated by at least £1,000.
Last July we were e-mailed by Mr and Mrs. L Michel , who completed a garden flat in Fakenham in October 2007. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Similar properties in Fakenham with a long lease were in the region of £166,400. The average amount of ground rent was £60 invoiced yearly. The lease concluded on 17 May 2080. Given that there were 54 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of fees.
Mr R Walker owned a studio apartment in Fakenham in April 2002. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparative premises in Fakenham with an extended lease were in the region of £227,800. The average ground rent payable was £45 collected every twelve months. The lease concluded on 26 May 2091. Given that there were 65 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.