With a domestic leasehold property in Fenham, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Leasehold owners in Fenham with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years left, under the relevant statute the landlord is entitled to calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Fenham with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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 |
Irrespective of whether you are a tenant or a landlord in Fenham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fenham valuers.
Oscar was the the leasehold owner of a studio apartment in Fenham on the market with a lease of a little over 59 years outstanding. Oscar on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Oscar to exercise his statutory right. Oscar procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
In 2014 we were called by Mrs E Taylor who, having moved into a recently refurbished flat in Fenham in April 2005. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparable homes in Fenham with an extended lease were worth £300,000. The average amount of ground rent was £50 collected every twelve months. The lease lapsed in 2100. Having 75 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.
Mrs Zoe Miller was assigned a lease of a recently refurbished flat in Fenham in January 1999. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Similar residencies in Fenham with an extended lease were in the region of £250,400. The average ground rent payable was £65 billed per annum. The lease elapsed on 2 April 2089. Taking into account 64 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus professional charges.