There is no doubt about it a leasehold property in Faversham is a wasting asset as a result of the shortening lease. If the residual term has, beyond one hundred years remaining then this decrease may be negligible that being said there will become a stage 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 main logic behind why you should consider extending sooner than later. Many flat owners in Faversham will meet the qualifying criteria; that being said a conveyancer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with procure 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 lawyer we work with provide it.
Following lengthy discussions with the landlord of her studio apartment in Faversham, Caitlin started the lease extension process just as the lease was approaching the all-important eighty-year deadline. The legal work was finalised in February 2007. The landlord’s costs were kept to an absolute minimum.
Last Spring we were phoned by Mr Isaac Laurent , who took over the lease of a newly refurbished apartment in Faversham in August 2002. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical flats in Faversham with a long lease were valued around £174,200. The mid-range amount of ground rent was £55 billed annually. The lease concluded in 2076. Considering the 51 years unexpired we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.
Mr and Mrs. W Bell was assigned a lease of a newly refurbished apartment in Faversham in July 2010. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Identical premises in Faversham with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 billed quarterly. The lease ran out on 23 March 2096. Given that there were 71 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.