When it comes to long leasehold property in Fenham, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy 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 gets disproportionately greater especially when there are less than 80 years remaining. Residents in Fenham with a lease approaching 81 years left should seriously consider extending it sooner than later. Once the lease term has less than 80 years remaining, under the current Act the landlord is entitled to calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Fenham,the lease extension lawyers that we work with will always be prepared 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.
Off the back of unsuccessful correspondence with the freeholder of her leasehold apartment in Fenham, Jade started the lease extension process as the 80 year threshold was rapidly advancing. The transaction was finalised in October 2013. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. M Rivera was assigned a lease of a studio flat in Fenham in January 2004. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Similar properties in Fenham with a long lease were in the region of £243,000. The average amount of ground rent was £65 billed per annum. The lease ran out on 27 January 2088. Given that there were 63 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus legals.
Last Summer we were approach by Mrs K Ali , who owned a studio flat in Fenham in February 2001. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar flats in Fenham with a long lease were worth £181,600. The mid-range ground rent payable was £55 collected yearly. The lease terminated on 11 April 2077. Taking into account 52 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of fees.