The nearer a residential lease in Farnborough nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Farnborough will qualify for this right; that being said a lawyer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Coventry Building Society | |
| Leeds Building Society | |
| Virgin |
Engaging our service gives you increased control over the value of your Farnborough leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Alexander, came perilously near to the eighty-year mark with the lease on his two bedroom flat in Farnborough. Having bought his home two decades ago, the unexpired term was of no relevance. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Alexander was able to extend his lease at the eleventh hour in September. Alexander and the freeholder eventually settled on sum of £5,500 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £975.
In 2010 we were contacted by Mr and Mrs. V Rose who, having owned a ground floor flat in Farnborough in November 2008. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparative properties in Farnborough with a long lease were valued about £213,600. The mid-range ground rent payable was £60 collected monthly. The lease concluded in 2083. Taking into account 57 years unexpired we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including legals.
In 2014 we were approached by Mr Ethan Roux who, having took over the lease of a garden flat in Farnborough in March 1996. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable residencies in Farnborough with an extended lease were valued about £200,000. The average ground rent payable was £50 billed monthly. The lease finished on 18 September 2103. Taking into account 77 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.