The nearer a domestic lease in Farnham nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Farnham will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Farnham with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Farnham can be a difficult process. We recommend you secure 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 lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the landlord of her ground floor flat in Farnham, Alice started the lease extension process as the 80 year threshold was swiftly advancing. The lease extension was concluded in November 2013. The freeholder’s costs were kept to an absolute minimum.
Ms J Watson took over the lease of a basement apartment in Farnham in August 2005. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Identical residencies in Farnham with a long lease were valued about £174,200. The average amount of ground rent was £55 invoiced annually. The lease concluded in 2077. Given that there were 51 years remaining we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus professional charges.
Last year we were e-mailed by Dr Gabriel Green , who bought a basement apartment in Farnham in November 1999. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative premises in Farnham with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease ran out in 2097. Having 71 years as a residual term we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.