There is no doubt about it a leasehold property in Farnham Common is a wasting asset as a result of the shortening lease. Where the residual term has, more than 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Farnham Common will meet the qualifying criteria; nevertheless a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Farnham Common,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Farnham Common valuers.
Half a year ago Jacob, came critically near to the 80-year threshold with the lease on his garden flat in Farnham Common. In buying his property twenty years previously, the length of the lease was of little importance. by good luck, he noticed he would imminently be paying an inflated amount for Extending the lease. Jacob extended the lease at the eleventh hour last March. Jacob and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If he had missed the deadline, the figure would have escalated by a minimum £1,075.
Mr and Mrs. Y Rose took over the lease of a ground floor apartment in Farnham Common in September 1995. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Farnham Common with a long lease were worth £200,800. The mid-range ground rent payable was £65 collected yearly. The lease lapsed in 2086. Taking into account 60 years remaining we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of legals.
Mrs Katie López purchased a one bedroom flat in Farnham Common in September 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Farnham Common with an extended lease were in the region of £260,000. The average amount of ground rent was £50 collected per annum. The lease expired on 28 August 2097. Given that there were 71 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.