Falconwood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Falconwood residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Falconwood you would be well advised to see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Falconwood flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Falconwood with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Falconwood leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Jayden, came seriously near to the eighty-year mark with the lease on his leasehold flat in Falconwood. In buying his home two decades ago, the unexpired term was of little importance. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Jayden was able to extend his lease just in the nick of time last July. Jayden and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If the lease had dropped lower than 80 years, the price would have gone up by at least £875.
Mrs Robyn Bailey took over the lease of a first floor flat in Falconwood in September 2004. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar premises in Falconwood with 100 year plus lease were worth £171,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2075. Taking into account 50 years remaining we estimated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including costs.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat.