Farnham Royal leases on domestic properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. Flat owners in Farnham Royal will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and formalities to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally considered that a property 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 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Farnham Royal can be a difficult process. We recommend you procure guidance 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 a wealth of experience procuring Farnham Royal 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 David, started to get close to the 80-year mark with the lease on his purpose- built flat in Farnham Royal. In buying his property 19 years previously, the unexpired term was of little importance. As luck would have it, he noticed he needed to take action soon on Extending the lease. David was able to extend his lease just in the nick of time last July. David and the freeholder subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the price would have escalated by at least £875.
Ms Catherine Williams acquired a basement apartment in Farnham Royal in November 2000. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparative homes in Farnham Royal with an extended lease were valued about £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ended on 4 April 2097. Having 72 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
In 2010 we were contacted by Mr and Mrs. D Ricardo who, having moved into a basement flat in Farnham Royal in September 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable properties in Farnham Royal with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 invoiced yearly. The lease ended on 9 November 2076. Having 51 years unexpired we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 not including professional charges.