Faversham leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Faversham will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Faversham with more than 100 years remaining 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| 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. |
Lease extensions in Faversham can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Faversham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the landlord of her ground floor flat in Faversham, Olivia commenced the lease extension process just as her lease was approaching the all-important eighty-year deadline. The transaction was concluded in January 2012. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. B Lefèvre was assigned a lease of a studio flat in Faversham in November 1996. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Similar premises in Faversham with 100 year plus lease were worth £243,000. The average amount of ground rent was £65 billed per annum. The lease came to a finish on 13 February 2088. Having 63 years left we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of costs.
Mr and Mrs. J Smith was assigned a lease of a garden apartment in Faversham in July 2008. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative residencies in Faversham with a long lease were worth £181,600. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed in 2077. Having 52 years left we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including fees.