Farnham Common residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
Leasehold properties in Farnham Common with in excess of 100 years left on the lease are sometimes 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Farnham Common leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy negotiations with the freeholder of her first floor flat in Farnham Common, Alice commenced the lease extension process as the 80 year mark was swiftly approaching. The lease extension was concluded in August 2014. The landlord’s fees were kept to an absolute minimum.
Dr Sarah Walker owned a one bedroom apartment in Farnham Common in July 1999. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparable properties in Farnham Common with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ran out in 2096. Given that there were 70 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
Last Autumn we were e-mailed by Mr and Mrs. K Thompson , who purchased a recently refurbished apartment in Farnham Common in August 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable flats in Farnham Common with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £60 billed quarterly. The lease finished in 2106. Having 80 years left we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.