Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Falconwood. Inevitably, the term of lease remaining shortens over time. This is often overlooked and only becomes a problem when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Falconwood have the right to extend the lease for a further ninety years under statute. Please give careful consideration before putting off your Falconwood lease extension. Holding off the cost now likely increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Falconwood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Logan, came very near to the 80-year threshold with the lease on his two bedroom apartment in Falconwood. In buying his home twenty years previously, the length of the lease was of no relevance. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Logan extended the lease just under the wire last August. Logan and the landlord ultimately agreed on an amount of £6,000 . If the lease had dipped below 80 years, the premium would have escalated by at least £1,025.
In 2013 we were called by Dr Isaac Stewart who, having bought a garden flat in Falconwood in October 2010. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar flats in Falconwood with a long lease were valued around £257,800. The average amount of ground rent was £65 collected per annum. The lease terminated on 1 November 2090. Considering the 65 years outstanding we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of costs.
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.