Fawley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Fawley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Fawley you should check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Fawley with more than one hundred years outstanding on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Fawley can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 in-depth market knowledge dealing with Fawley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful correspondence with the freeholder of her ground floor flat in Fawley, Victoria started the lease extension process just as her lease was nearing the crucial eighty-year threshold. The transaction was concluded in November 2012. The freeholder’s charges were negotiated to under 500 pounds.
Mr and Mrs. J Martinez purchased a one bedroom apartment in Fawley in June 2010. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparable flats in Fawley with 100 year plus lease were in the region of £260,200. The average ground rent payable was £65 collected annually. The lease terminated in 2092. Having 66 years left we estimated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 not including legals.
Dr Michael Girard bought a basement flat in Fawley in June 1997. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative homes in Fawley with an extended lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed on 21 November 2081. Given that there were 55 years remaining we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.