Feltwell leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Feltwell tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Feltwell you really ought to investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Feltwell leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold properties in Feltwell with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Using our service gives you enhanced control over the value of your Feltwell leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Lucas owned a high value apartment in Feltwell on the market with a lease of a little over fifty eight years left. Lucas informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last June we were e-mailed by Mrs G François , who purchased a one bedroom flat in Feltwell in May 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Feltwell with an extended lease were valued about £250,000. The average ground rent payable was £50 billed yearly. The lease termination date was in 2095. Considering the 69 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
Last year we were e-mailed by Dr B Sharif , who bought a first floor apartment in Feltwell in November 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparable flats in Feltwell with a long lease were worth £290,000. The mid-range amount of ground rent was £60 billed monthly. The lease terminated on 6 February 2106. Considering the 80 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.