Faringdon leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Faringdon residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Faringdon you would be well advised to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Faringdon can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 a wealth of experience dealing with Faringdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Jude, started to get near to the 80-year mark with the lease on his ground floor flat in Faringdon. Having bought his property two decades ago, the length of the lease was of little relevance. Fortunately, he noticed he needed to take steps soon on a lease extension. Jude extended the lease at the eleventh hour last January. Jude and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If he had missed the deadline, the amount would have gone up by a minimum £1,150.
Last June we were approach by Ms Bethan Robinson , who moved into a recently refurbished apartment in Faringdon in January 2008. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparable homes in Faringdon with an extended lease were valued around £166,800. The average amount of ground rent was £50 collected annually. The lease ended in 2075. Given that there were 50 years remaining we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including legals.
Last Christmas we were e-mailed by Mrs Lydia Garcia , who was assigned a lease of a newly refurbished flat in Faringdon in March 2007. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Faringdon with an extended lease were worth £280,000. The average amount of ground rent was £45 billed per annum. The lease came to a finish in 2095. Given that there were 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.