On the balance of probabilities if you own a flat in Fareham you actually own a long leasehold interest over your property
Leasehold residencies in Fareham with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Fareham leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas John, started to get near to the eighty-year mark with the lease on his purpose- built flat in Fareham. In buying his home 19 years ago, the length of the lease was of no importance. Fortunately, he noticed he would imminently be paying an escalated premium for Extending the lease. John extended the lease just under the wire in January. John and the landlord ultimately settled on sum of £5,000 . If the lease had descended lower than 80 years, the figure would have gone up by at least £1,050.
Last June we were phoned by Mr and Mrs. A Dupont , who acquired a ground floor flat in Fareham in March 2002. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable homes in Fareham with a long lease were in the region of £184,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease ended in 2079. Taking into account 53 years outstanding we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
In 2012 we were called by Mr G Peterson who, having purchased a one bedroom apartment in Fareham in May 2004. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparable premises in Fareham with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 collected per annum. The lease came to a finish in 2099. Given that there were 73 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.