As the length of the unexpired term of a Falconwood residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Falconwood will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Falconwood with more than one hundred years outstanding on the lease are sometimes 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 buying 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. |
| 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. |
| 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. |
Retaining our service gives you increased control over the value of your Falconwood leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Aarav was the the leasehold proprietor of a studio apartment in Falconwood on the market with a lease of a few days over 61 years remaining. Aarav on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2012 we were called by Dr Alex Lefèvre who, having bought a studio apartment in Falconwood in November 1996. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar premises in Falconwood with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 collected every twelve months. The lease termination date was on 26 July 2105. Having 79 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
An example of a Lease Extension decision for a Falconwood residence is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case was in relation to 1 flat.