The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Fakenham can extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Fakenham lease extension. Putting off that expense now simply increases the premium you will ultimately have to pay to extend the lease.
Leasehold properties in Fakenham with in excess of one hundred 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
Irrespective of whether you are a tenant or a landlord in Fakenham,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fakenham valuers.
Trailing unsuccessful correspondence with the freeholder of her basement apartment in Fakenham, Hannah started the lease extension process just as her lease was coming close to the critical 80-year mark. The transaction was finalised in June 2006. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were phoned by Dr A López who, having bought a basement apartment in Fakenham in October 2011. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Identical flats in Fakenham with 100 year plus lease were valued about £245,000. The average ground rent payable was £50 collected per annum. The lease expired in 2094. Taking into account 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
In 2013 we were e-mailed by Mr and Mrs. S Lee who, having bought a first floor apartment in Fakenham in March 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Fakenham with an extended lease were in the region of £285,000. The average amount of ground rent was £55 billed quarterly. The lease terminated on 7 March 2105. Considering the 79 years remaining we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.