The re-sale value of a leasehold property in Fareham is impacted by how long the lease has left to run. If it is close to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised prior to the eighty year mark. Current legislation enables Fareham qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Fareham with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| Nationwide Building Society |
Lease extensions in Fareham can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 Fareham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jayden was the the leasehold owner of a high value flat in Fareham on the market with a lease of fraction over fifty eight years unexpired. Jayden informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were phoned by Dr Thomas Khan , who acquired a purpose-built flat in Fareham in February 1998. The question was if we could estimate the premium could be to prolong the lease by an additional years. Comparable homes in Fareham with an extended lease were valued around £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease ran out on 19 February 2104. Taking into account 78 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2011 we were called by Mr W David who, having took over the lease of a one bedroom apartment in Fareham in February 2006. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar flats in Fareham with a long lease were valued around £267,600. The average amount of ground rent was £65 invoiced monthly. The lease came to a finish in 2093. Given that there were 67 years left we approximated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus expenses.