Farnham Common leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. Leasehold owners in Farnham Common will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Farnham Common with more than one hundred years left 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 premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The lawyers that we work with handle Farnham Common lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 6 months of lengthy negotiations with the landlord of her ground floor apartment in Farnham Common, Sarah commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The lease extension completed in September 2012. The freeholder’s charges were negotiated to less than 650 GBP.
In 2014 we were called by Dr J Lefèvre who, having acquired a garden flat in Farnham Common in August 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Farnham Common with an extended lease were worth £285,000. The mid-range ground rent payable was £55 collected quarterly. The lease elapsed on 27 May 2105. Considering the 80 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
In 2011 we were contacted by Dr Harriet López who, having took over the lease of a one bedroom flat in Farnham Common in June 1997. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable properties in Farnham Common with a long lease were in the region of £200,800. The average amount of ground rent was £65 billed monthly. The lease ended in 2085. Having 60 years outstanding we approximated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including legals.