For anyone whose Fakenham flat is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancers 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.
Last October Thomas, came dangerously close to the 80-year threshold with the lease on his one bedroom flat in Fakenham. In buying his flat 18 years previously, the length of the lease was of no relevance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Thomas extended the lease just under the wire in June. Thomas and the landlord who owned the flat above in the end settled on sum of £5,000 . If the lease had dipped to less than 80 years, the figure would have escalated by at least £1,100.
In 2010 we were phoned by Mr S François who, having completed a studio flat in Fakenham in February 2004. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Fakenham with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 collected per annum. The lease concluded on 9 November 2081. Given that there were 56 years outstanding we estimated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of expenses.
Last month we were called by Mr Elijah Bennett , who was assigned a lease of a first floor apartment in Fakenham in July 1998. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative flats in Fakenham with an extended lease were valued about £242,600. The mid-range ground rent payable was £45 invoiced annually. The lease end date was in 2092. Having 67 years unexpired we calculated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus fees.