For those whose Farnborough property is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Lease extensions in Farnborough can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Subsequent to protracted negotiations with the landlord of her purpose-built flat in Farnborough, Sophia started the lease extension process just as the lease was coming close to the critical eighty-year mark. The legal work was finalised in September 2015. The freeholder’s fees were kept to an absolute minimum.
Mr Reuben Walker acquired a first floor apartment in Farnborough in March 1997. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Farnborough with a long lease were valued about £250,400. The average ground rent payable was £65 collected quarterly. The lease elapsed on 9 August 2090. Given that there were 64 years left we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including expenses.
Mr and Mrs. L Davis moved into a studio flat in Farnborough in May 2000. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical homes in Farnborough with a long lease were valued about £189,000. The mid-range amount of ground rent was £55 billed monthly. The lease came to a finish in 2079. Considering the 53 years remaining we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.