Felpham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Felpham enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Felpham you should investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Felpham with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Felpham,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Felpham valuers.
In recent months Elijah, came seriously near to the 80-year threshold with the lease on his two bedroom apartment in Felpham. In buying his property 18 years previously, the length of the lease was of no significance. Luckily, he became aware that he would imminently be paying an escalated premium for a lease extension. Elijah was able to extend his lease just under the wire last January. Elijah and the landlord subsequently settled on the final figure of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £875.
Last Winter we were called by Mr R Scott , who purchased a studio flat in Felpham in April 1996. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable homes in Felpham with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 collected monthly. The lease expired on 26 May 2097. Considering the 71 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Dr Alex Bell was assigned a lease of a one bedroom flat in Felpham in August 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Felpham with an extended lease were worth £254,200. The average amount of ground rent was £60 collected yearly. The lease termination date was in 2077. Taking into account 51 years as a residual term we calculated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus legals.