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 becomes 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 see if your lease has between 70 and ninety years left. There are good reasons why a Falconwood flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold premises in Falconwood with more than 100 years unexpired 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 circumstances there is often little upside in purchasing 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Falconwood can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 procuring Falconwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luke owned a studio flat in Falconwood on the market with a lease of fraction over 61 years left. Luke informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Luke to invoke his statutory right. Luke obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Ms W Moore acquired a one bedroom apartment in Falconwood in April 1997. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Similar residencies in Falconwood with a long lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease came to a finish on 1 May 2085. Having 59 years outstanding we approximated the premium to the landlord to extend the lease to be within £27,600 and £31,800 not including expenses.
An example of a Lease Extension decision 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.