On the balance of probabilities if you own a flat in Farnham Common you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Farnham Common can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
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 dealing with 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.
Two years ago Liam, came perilously close to the 80-year threshold with the lease on his purpose- built apartment in Farnham Common. In buying his flat 19 years ago, the lease term was of no importance. Fortunately, he became aware that he would imminently be paying an escalated premium for a lease extension. Liam was able to extend his lease just under the wire in April. Liam and the freeholder eventually settled on the final figure of £6,000 . If the lease had fallen lower than 80 years, the premium would have increased by a minimum £1,075.
Last Christmas we were e-mailed by Mr Hunter Lefebvre , who moved into a one bedroom flat in Farnham Common in September 1998. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar flats in Farnham Common with an extended lease were valued around £181,200. The mid-range ground rent payable was £65 billed annually. The lease end date was in 2082. Given that there were 56 years remaining we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including costs.
In 2014 we were called by Dr Finley Martinez who, having was assigned a lease of a purpose-built flat in Farnham Common in August 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative homes in Farnham Common with an extended lease were in the region of £242,600. The average ground rent payable was £45 billed monthly. The lease finished in 2093. Taking into account 67 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including expenses.