As the length of the unexpired term of a Farnham Common domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 100 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Farnham Common will meet the qualifying criteria; nevertheless a lawyer should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Farnham Common can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 in-depth market knowledge 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.
Trailing protracted discussions with the landlord of her ground floor apartment in Farnham Common, Lydia commenced the lease extension process as the eighty year threshold was swiftly nearing. The transaction completed in May 2010. The freeholder’s costs were negotiated to about 500 GBP.
In 2014 we were phoned by Mr and Mrs. G Wilson who, having was assigned a lease of a one bedroom apartment in Farnham Common in April 2010. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Identical flats in Farnham Common with a long lease were worth £275,000. The mid-range ground rent payable was £55 invoiced monthly. The lease lapsed in 2102. Having 77 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
Dr G Martinez took over the lease of a garden apartment in Farnham Common in January 1998. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Farnham Common with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 collected yearly. The lease terminated on 18 February 2082. Considering the 57 years unexpired we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.