Faringdon leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Faringdon will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some cases you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Faringdon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Luca, came critically near to the eighty-year mark with the lease on his two bedroom flat in Faringdon. In buying his home two decades ago, the lease term was of little concern. Thankfully, he realised he would soon be paying an escalated premium for Extending the lease. Luca was able to extend his lease at the eleventh hour last August. Luca and the freeholder subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £1,150.
In 2012 we were called by Mrs E Roberts who, having bought a purpose-built apartment in Faringdon in August 1996. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative homes in Faringdon with 100 year plus lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced annually. The lease end date was on 19 October 2081. Given that there were 55 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus expenses.
Ms S Hill moved into a purpose-built apartment in Faringdon in October 2000. We are asked if we could estimate the price could be to prolong the lease by an additional years. Similar premises in Faringdon with an extended lease were valued around £295,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease came to a finish on 22 October 2101. Given that there were 75 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.