The only way is down when it comes to Falconwood lease terms. Falconwood properties that have a residual term less than than 80 years will reduce in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold residencies in Falconwood with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Falconwood 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 conveyancer we work with provide it.
After unsuccessful correspondence with the freeholder of her first floor flat in Falconwood, Rachel initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work was finalised in February 2011. The landlord’s costs were restricted to about 600 GBP.
In 2012 we were called by Dr Sophie Bailey who, having acquired a studio flat in Falconwood in July 2011. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable premises in Falconwood with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out on 24 January 2081. Taking into account 55 years unexpired we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Falconwood flat 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.