The re-sale value of a leasehold property in Fenny Stratford is impacted by how long the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised well before the 80 year mark. Statute entitles Fenny Stratford qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Fenny Stratford with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Fenny Stratford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
During the course of the last few months Luca, started to get near to the 80-year mark with the lease on his basement flat in Fenny Stratford. In buying his home two decades ago, the length of the lease was of minimal relevance. Fortunately, he became aware that he needed to take action soon on a lease extension. Luca arranged for a lease extension just under the wire in September. Luca and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If he had missed the deadline, the premium would have increased by a minimum £1,000.
Dr Riley Lefebvre purchased a first floor apartment in Fenny Stratford in June 2005. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Similar properties in Fenny Stratford with an extended lease were valued around £260,200. The mid-range ground rent payable was £65 billed yearly. The lease lapsed on 22 May 2092. Given that there were 66 years remaining we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of expenses.
Last year we were phoned by Mr and Mrs. F Martin , who was assigned a lease of a recently refurbished apartment in Fenny Stratford in February 2012. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparable residencies in Fenny Stratford with an extended lease were worth £198,800. The average ground rent payable was £55 invoiced per annum. The lease lapsed on 1 May 2081. Having 55 years as a residual term we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of costs.