When it comes to domestic leasehold premises in Falconwood, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Residents in Falconwood with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once a lease has below 80 years left, under the current legislation the landlord can calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Falconwood with more than 100 years remaining 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
Using our service will provide you enhanced control over the value of your Falconwood leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jason, started to get close to the eighty-year threshold with the lease on his first floor apartment in Falconwood. In buying his property 19 years ago, the length of the lease was of little concern. Luckily, he became aware that he would imminently be paying an escalated premium for a lease extension. Jason arranged for a lease extension just ahead of time last January. Jason and the freeholder via the managing agents subsequently agreed on an amount of £5,500 . If the lease had slipped below eighty years, the figure would have become more costly by at least £975.
In 2012 we were phoned by Dr Catherine Peterson who, having moved into a purpose-built flat in Falconwood in July 2006. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical properties in Falconwood with a long lease were in the region of £213,600. The mid-range ground rent payable was £60 invoiced annually. The lease ended in 2076. Given that there were 57 years remaining we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
An example of a Lease Extension case for a Falconwood residence 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 was in relation to 1 flat.