As the the remaining lease term of a Faversham residential lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 125 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. Most flat owners in Faversham will qualify for this right; that being said a lawyer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Faversham with in excess of 100 years unexpired 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 to be gained by buying the freehold unless savings on ground rent and service 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Faversham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Faversham valuers.
After lengthy discussions with the landlord of her first floor apartment in Faversham, Victoria started the lease extension process just as her lease was approaching the critical 80-year mark. The lease extension was finalised in September 2007. The freeholder’s costs were kept to an absolute minimum.
Mr Nathaniel Martínez acquired a ground floor apartment in Faversham in April 1997. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative flats in Faversham with 100 year plus lease were valued around £275,000. The average ground rent payable was £65 collected per annum. The lease came to a finish in 2094. Taking into account 68 years left we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.
Dr Oscar García took over the lease of a recently refurbished apartment in Faversham in January 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable flats in Faversham with 100 year plus lease were in the region of £208,600. The mid-range amount of ground rent was £60 invoiced annually. The lease terminated in 2083. Taking into account 57 years unexpired we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus legals.