The market value of a leasehold property in Fenny Stratford is impacted by how long the lease has remaining. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that formalities can be concluded prior to the 80 year cut off point. Leasehold Reform legislation enables Fenny Stratford qualifying lessees to an additional term of 90 years over and above the remaining term, at a nominal rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Fenny Stratford with more than 100 years unexpired 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Fenny Stratford,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fenny Stratford valuers.
Subsequent to protracted discussions with the freeholder of her leasehold apartment in Fenny Stratford, Ella commenced the lease extension process as the eighty year threshold was fast coming. The lease extension completed in April 2006. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were phoned by Mrs Niamh Bonnet , who completed a ground floor apartment in Fenny Stratford in June 2006. We are asked if we could approximate the price could be to prolong the lease by ninety years. Identical properties in Fenny Stratford with 100 year plus lease were valued around £210,000. The mid-range amount of ground rent was £50 billed yearly. The lease finished in 2106. Considering the 80 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Last Summer we were approach by Mr and Mrs. U David , who took over the lease of a ground floor flat in Fenny Stratford in September 2002. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative flats in Fenny Stratford with a long lease were worth £275,000. The average ground rent payable was £45 billed yearly. The lease finished on 8 June 2095. Considering the 69 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.