Falconwood leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Falconwood will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than 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 equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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 |
Lease extensions in Falconwood can be a difficult process. We recommend you get professional help from a lawyer and valuer 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.
Following protracted correspondence with the landlord of her ground floor flat in Falconwood, Abigail initiated the lease extension process as the 80 year threshold was rapidly advancing. The transaction completed in May 2011. The freeholder’s charges were negotiated to less than 500 GBP.
In 2010 we were e-mailed by Dr H Bonnet who, having completed a studio apartment in Falconwood in October 1997. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar residencies in Falconwood with an extended lease were valued around £267,600. The average amount of ground rent was £65 collected per annum. The lease expired on 26 August 2093. Having 67 years left we calculated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 not including costs.
An example of a Lease Extension matter before the tribunal 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.