Farnborough leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Farnborough enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Farnborough you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives 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 decide 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.
Trailing unsuccessful discussions with the landlord of her basement apartment in Farnborough, Millie started the lease extension process just as the lease was approaching the crucial eighty-year deadline. The legal work was concluded in January 2008. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. C François bought a garden apartment in Farnborough in January 1999. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Similar residencies in Farnborough with 100 year plus lease were valued about £198,800. The average amount of ground rent was £55 invoiced yearly. The lease expiry date was in 2080. Considering the 55 years remaining we calculated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of costs.
Last year we were phoned by Mr and Mrs. P Wood , who owned a one bedroom apartment in Farnborough in January 2001. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Identical premises in Farnborough with an extended lease were in the region of £300,000. The average ground rent payable was £50 invoiced monthly. The lease lapsed in 2100. Having 75 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.