Fareham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Fareham residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Fareham you must see if your lease has between seventy and 90 years left. There are good reasons why a Fareham leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold premises in Fareham with in excess of 100 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Fareham can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Fareham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Austin, came dangerously near to the eighty-year mark with the lease on his leasehold flat in Fareham. Having bought his flat 18 years ago, the lease term was of minimal significance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Austin extended the lease at the eleventh hour in September. Austin and the freeholder in the end agreed on an amount of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £850.
In 2014 we were phoned by Dr A Alexander who, having owned a purpose-built apartment in Fareham in February 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Fareham with a long lease were in the region of £243,000. The mid-range ground rent payable was £65 invoiced monthly. The lease finished on 28 April 2089. Given that there were 63 years left we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus expenses.
Mr E Turner owned a first floor apartment in Fareham in June 2010. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Fareham with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 invoiced every twelve months. The lease ended on 4 March 2078. Taking into account 52 years outstanding we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of legals.