Farnborough leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% 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. Leasehold owners in Farnborough will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain cases you may not qualify. There are prescribed timetables and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Farnborough with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Farnborough can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
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 procuring Farnborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Logan owned a 2 bedroom apartment in Farnborough on the market with a lease of a little over 59 years left. Logan on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert advice and secured satisfactory deal without going to tribunal and sell the flat.
Last Christmas we were e-mailed by Ms Abbie Brooks , who acquired a ground floor flat in Farnborough in July 2006. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative flats in Farnborough with an extended lease were worth £280,000. The average ground rent payable was £45 billed quarterly. The lease ended in 2095. Considering the 69 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Last July we were e-mailed by Dr C Mitchell , who took over the lease of a purpose-built flat in Farnborough in July 2012. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Farnborough with a long lease were valued around £216,000. The average ground rent payable was £60 invoiced annually. The lease terminated in 2084. Taking into account 58 years outstanding we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus fees.