Falconwood leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Falconwood enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Falconwood you would be well advised to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Using our service gives you increased control over the value of your Falconwood leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Felix was the the leasehold owner of a studio apartment in Falconwood being marketed with a lease of a few days over 61 years outstanding. Felix informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Felix to invoke his statutory right. Felix obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the flat.
In 2010 we were called by Mr and Mrs. B Hernández who, having was assigned a lease of a basement apartment in Falconwood in July 2000. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical premises in Falconwood with 100 year plus lease were worth £206,200. The average amount of ground rent was £60 invoiced per annum. The lease ran out in 2082. Having 56 years unexpired we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.
An example of a Lease Extension decision for a Falconwood premises 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 affected 1 flat.