Farnham Common leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Farnham Common will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Chelsea Building Society | |
| Santander | |
| Virgin |
Using our service gives you better control over the value of your Farnham Common leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Harry, came very near to the 80-year mark with the lease on his leasehold flat in Farnham Common. In buying his property two decades ago, the lease term was of little importance. Thankfully, he became aware that he needed to take action soon on a lease extension. Harry arranged for a lease extension just ahead of time in August. Harry and the landlord ultimately agreed on a premium of £6,000 . If the lease had gone lower than 80 years, the amount would have escalated by a minimum £950.
Mr and Mrs. U Clark acquired a ground floor flat in Farnham Common in March 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparative properties in Farnham Common with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected annually. The lease ran out in 2094. Given that there were 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of professional charges.
In 2014 we were e-mailed by Dr Muhammad Ali who, having purchased a garden apartment in Farnham Common in May 2003. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparative premises in Farnham Common with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease lapsed in 2105. Having 79 years remaining we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.