Farnham residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold premises in Farnham with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Farnham can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful negotiations with the landlord of her purpose-built flat in Farnham, Louise initiated the lease extension process as the 80 year threshold was fast advancing. The transaction was concluded in April 2005. The landlord’s charges were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. S François who, having was assigned a lease of a one bedroom apartment in Farnham in March 2003. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparative flats in Farnham with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 collected quarterly. The lease terminated in 2106. Considering the 80 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2013 we were called by Dr V Laurent who, having moved into a purpose-built flat in Farnham in April 2007. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Identical premises in Farnham with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £45 invoiced monthly. The lease ended in 2095. Considering the 69 years unexpired we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.