The closer a residential lease in Farnham Common gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Farnham Common will meet the qualifying criteria; however a conveyancer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Farnham Common with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Farnham Common leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Andrew was the the leasehold owner of a conversion flat in Farnham Common on the market with a lease of a little over 61 years remaining. Andrew on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2013 we were approached by Dr Dylan Bernard who, having owned a first floor flat in Farnham Common in February 2006. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Farnham Common with an extended lease were worth £168,800. The average ground rent payable was £60 invoiced monthly. The lease came to a finish on 3 March 2079. Considering the 55 years left we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.
Last Winter we were approach by Mr C Clark , who moved into a one bedroom flat in Farnham Common in October 1998. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Similar homes in Farnham Common with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 invoiced quarterly. The lease lapsed on 11 October 2090. Taking into account 66 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.