The market value of a leasehold property in Farnham Common depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years remaining so that all matters can be addressed well before the 80 year threshold. Statute entitles Farnham Common qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| 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 |
Lease extensions in Farnham Common can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in lease extensions.
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 Farnham Common lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Lucas, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Farnham Common. Having purchased his home twenty years previously, the lease term was of little importance. As luck would have it, he noticed he would soon be paying an escalated premium for a lease extension. Lucas extended the lease at the eleventh hour in May. Lucas and the freeholder in the end settled on the final figure of £5,000 . If the lease had dipped to less than eighty years, the price would have become more costly by at least £900.
Last month we were e-mailed by Mr and Mrs. W Sánchez , who purchased a ground floor flat in Farnham Common in February 2002. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable residencies in Farnham Common with an extended lease were worth £210,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease end date was on 12 August 2088. Given that there were 62 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus legals.
Mr and Mrs. I Sharif bought a purpose-built apartment in Farnham Common in July 1999. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative homes in Farnham Common with 100 year plus lease were worth £260,000. The average ground rent payable was £50 billed per annum. The lease expired in 2098. Considering the 72 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.