Fawley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Fawley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Fawley you must investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Fawley leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Fawley with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Fawley,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 experience and the close ties they enjoy with Fawley valuers.
Mason was the the leasehold owner of a studio apartment in Fawley on the market with a lease of a few days over sixty years left. Mason on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Mason to exercise his statutory right. Mason procured expert advice and secured satisfactory resolution informally and sell the property.
In 2012 we were e-mailed by Mrs Catherine Brooks who, having bought a ground floor apartment in Fawley in May 2005. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparable flats in Fawley with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 billed monthly. The lease terminated on 8 February 2102. Considering the 76 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.
Last Autumn we were e-mailed by Mr and Mrs. F Bernard , who owned a recently refurbished flat in Fawley in October 2003. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Similar residencies in Fawley with 100 year plus lease were in the region of £252,800. The mid-range amount of ground rent was £65 billed yearly. The lease expired in 2091. Considering the 65 years left we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including professional charges.