The only way is down when it comes to Faversham lease terms. Faversham properties that have a residual term shorter than 80 years will de-escalate in market price even faster, and the cost of extending your lease will increase.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 also be not less than 75 years 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Faversham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jonathan owned a high value apartment in Faversham on the market with a lease of fraction over fifty eight years outstanding. Jonathan on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Mr and Mrs. E Lefèvre bought a first floor apartment in Faversham in May 2011. The question was if we could estimate the price would be to extend the lease by 90 years. Similar residencies in Faversham with a long lease were worth £206,200. The mid-range amount of ground rent was £55 billed annually. The lease ran out on 16 January 2081. Considering the 56 years outstanding we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.
In 2010 we were phoned by Mr and Mrs. V Petit who, having purchased a one bedroom flat in Faversham in June 2004. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Faversham with a long lease were valued around £300,000. The average amount of ground rent was £50 collected annually. The lease concluded on 1 May 2101. Taking into account 76 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.