As the the remaining lease term of a Fareham residential lease diminished so does its value and therefore the value of your property. If the residual term has, more than 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. The majority of flat owners in Fareham will meet the qualifying criteria; that being said a lawyer will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Fareham with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Fareham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fareham valuers.
Trailing unsuccessful correspondence with the landlord of her studio flat in Fareham, Danielle commenced the lease extension process as the 80 year deadline was swiftly coming. The legal work completed in May 2008. The landlord’s charges were kept to an absolute minimum.
Mr William García completed a garden apartment in Fareham in January 1996. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparable premises in Fareham with a long lease were worth £191,400. The mid-range ground rent payable was £55 invoiced per annum. The lease expired in 2080. Considering the 54 years as a residual term we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 plus professional charges.
Dr Rory Roux bought a ground floor apartment in Fareham in July 2010. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable properties in Fareham with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 collected every twelve months. The lease concluded in 2100. Considering the 74 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.