Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Fenny Stratford. Clearly, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Fenny Stratford have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please give careful attention before putting off your Fenny Stratford lease extension. Putting off that expense now simply increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 freeholder in Fenny Stratford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fenny Stratford valuers.
In the wake of 6 months of unsuccessful correspondence with the landlord of her two bedroom apartment in Fenny Stratford, Courtney commenced the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension was finalised in March 2012. The freeholder’s charges were kept to an absolute minimum.
Dr Y Rivera was assigned a lease of a basement flat in Fenny Stratford in November 2003. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Identical properties in Fenny Stratford with a long lease were in the region of £208,600. The average ground rent payable was £60 collected quarterly. The lease expiry date was on 23 August 2083. Having 57 years remaining we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including costs.
In 2013 we were approached by Dr M Girard who, having was assigned a lease of a purpose-built flat in Fenny Stratford in July 1995. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparable flats in Fenny Stratford with an extended lease were valued about £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease terminated in 2103. Having 77 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.