When it comes to residential leasehold premises in Farnborough, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years left. Anyone in Farnborough with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has under 80 years left, under the relevant statute the freeholder can calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you enhanced 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 wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Charlie owned a conversion apartment in Farnborough being sold with a lease of a little over fifty eight years outstanding. Charlie on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Charlie to exercise his statutory right. Charlie procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2014 we were contacted by Mr K Bernard who, having bought a garden apartment in Farnborough in January 1999. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable residencies in Farnborough with an extended lease were worth £300,000. The average amount of ground rent was £50 collected every twelve months. The lease finished in 2102. Taking into account 76 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Mr and Mrs. N Miller bought a ground floor apartment in Farnborough in June 1998. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Identical residencies in Farnborough with an extended lease were valued around £257,800. The average amount of ground rent was £65 billed every twelve months. The lease lapsed on 27 October 2091. Considering the 65 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including legals.