Farnham Common leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Farnham Common will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Farnham Common,the lease extension experts that we work with will always be willing 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.
Dylan owned a high value flat in Farnham Common being marketed with a lease of a few days over 61 years left. Dylan on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2012 we were phoned by Ms J Parker who, having acquired a garden flat in Farnham Common in March 2003. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical residencies in Farnham Common with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 collected every twelve months. The lease concluded in 2092. Considering the 66 years left we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Mr and Mrs. R Mercier acquired a ground floor flat in Farnham Common in January 2004. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable properties in Farnham Common with an extended lease were worth £275,000. The average amount of ground rent was £55 collected per annum. The lease lapsed on 13 August 2102. Taking into account 76 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.