Falconwood leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Falconwood residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Falconwood you really ought to check if your lease has between 70 and 90 years remaining. There are good reasons why a Falconwood leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Falconwood with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Falconwood can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Falconwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Samuel, came critically near to the 80-year threshold with the lease on his first floor apartment in Falconwood. Having bought his flat two decades ago, the length of the lease was of no concern. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Samuel was able to extend his lease just under the wire in July. Samuel and the freeholder via the managing agents in the end settled on an amount of £6,000 . If the lease had slid below eighty years, the figure would have become more exhorbitant by at least £1,125.
Mr Mason Mitchell acquired a basement flat in Falconwood in May 1995. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Falconwood with an extended lease were valued around £233,200. The mid-range ground rent payable was £60 collected monthly. The lease expired on 10 September 2087. Having 61 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus fees.
An example of a Lease Extension case for a Falconwood property 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.