Fakenham leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Leasehold owners in Fakenham will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake Fakenham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of lengthy correspondence with the freeholder of her first floor apartment in Fakenham, Isobel commenced the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The transaction was finalised in March 2009. The freeholder’s charges were negotiated to under 550 GBP.
In 2013 we were approached by Mr A Michel who, having acquired a ground floor flat in Fakenham in November 2009. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical flats in Fakenham with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected annually. The lease came to a finish on 15 July 2100. Given that there were 75 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
Last Winter we were e-mailed by Mr and Mrs. J Vincent , who moved into a one bedroom apartment in Fakenham in October 2000. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Identical properties in Fakenham with 100 year plus lease were valued around £173,800. The average amount of ground rent was £60 collected quarterly. The lease ran out on 1 May 2080. Given that there were 55 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of costs.