Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Faversham. Clearly, the term of lease left shortens over time. This may pass by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Faversham have the legal entitlement to extend the lease for a further 90 years in accordance with statute. Do give due attention before delaying your Faversham lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Faversham can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in this area.
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 a wealth of experience procuring 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 unsuccessful negotiations with the freeholder of her studio flat in Faversham, Francesca commenced the lease extension process just as the lease was nearing the critical 80-year deadline. The lease extension was concluded in October 2005. The freeholder’s costs were negotiated to slightly above 650 GBP.
Mr K Michel moved into a garden apartment in Faversham in June 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Faversham with a long lease were in the region of £210,000. The average amount of ground rent was £50 collected annually. The lease expired on 2 February 2106. Considering the 80 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
Ms Anna Robinson was assigned a lease of a one bedroom flat in Faversham in July 2000. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Faversham with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 invoiced yearly. The lease termination date was in 2095. Considering the 69 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.