Farnham leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Flat owners in Farnham will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and steps to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Farnham with in excess of 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 property. In such situations there is often little to be gained by purchasing 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. |
| Chelsea Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a freeholder in Farnham,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 experience and the close ties they enjoy with Farnham valuers.
Off the back of unsuccessful correspondence with the freeholder of her purpose-built flat in Farnham, Kirsty commenced the lease extension process as the 80 year mark was swiftly nearing. The legal work completed in June 2009. The freeholder’s charges were kept to an absolute minimum.
Mr Nathan Morris bought a garden flat in Farnham in March 2012. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Farnham with a long lease were in the region of £216,000. The average ground rent payable was £60 collected per annum. The lease ran out on 21 September 2083. Having 58 years as a residual term we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
Last Winter we were called by Mr L Martínez , who bought a garden apartment in Farnham in August 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Identical flats in Farnham with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ran out in 2103. Having 78 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.