Fawley leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Fawley will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| Santander | |
| Skipton Building Society |
Retaining our service gives you increased control over the value of your Fawley leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jason owned a studio flat in Fawley being marketed with a lease of a little over 72 years left. Jason informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to invoke his statutory right. Jason procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Mr Adam Bell bought a one bedroom flat in Fawley in March 2000. The question was if we could estimate the price would be to prolong the lease by ninety years. Comparable properties in Fawley with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced annually. The lease terminated on 15 March 2090. Considering the 64 years unexpired we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus costs.
In 2009 we were phoned by Mr and Mrs. U Leroy who, having completed a purpose-built flat in Fawley in May 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Identical premises in Fawley with an extended lease were worth £184,000. The average ground rent payable was £55 collected per annum. The lease came to a finish in 2079. Having 53 years remaining we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.