With a long leasehold property in Fawley, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Residents in Fawley with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has less than eighty years outstanding, under the current statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Fawley can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Fawley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the freeholder of her one bedroom apartment in Fawley, Robyn initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The legal work was concluded in January 2014. The landlord’s fees were kept to an absolute minimum.
Last March we were e-mailed by Mr and Mrs. Y Roux , who bought a one bedroom flat in Fawley in October 2001. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Fawley with an extended lease were worth £275,000. The average ground rent payable was £65 invoiced every twelve months. The lease ended on 15 April 2093. Given that there were 68 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
In 2011 we were approached by Mrs Harriet Gómez who, having moved into a one bedroom apartment in Fawley in October 1996. The question was if we could approximate the price would likely be to extend the lease by ninety years. Comparative residencies in Fawley with a long lease were worth £216,000. The mid-range ground rent payable was £60 collected yearly. The lease expired in 2083. Given that there were 58 years remaining we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.