It’s an underpublicised certainty that a Felpham residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Felpham property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Felpham will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Felpham with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Felpham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Felpham valuers.
Off the back of lengthy negotiations with the landlord of her first floor apartment in Felpham, Sarah initiated the lease extension process just as the lease was coming close to the all-important eighty-year mark. The lease extension was finalised in February 2006. The freeholder’s charges were negotiated to below 450 GBP.
Last year we were phoned by Dr Y Peterson , who was assigned a lease of a studio flat in Felpham in July 2005. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar premises in Felpham with an extended lease were worth £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out on 3 May 2083. Considering the 57 years remaining we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.
Dr A Girard owned a studio flat in Felpham in January 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Similar residencies in Felpham with 100 year plus lease were valued around £245,000. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish on 2 January 2094. Considering the 68 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.