The re-sale value of a leasehold property in Fenny Stratford is impacted by how long the lease has remaining. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed ahead of the 80 year threshold. Current legislation entitles Fenny Stratford qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
Retaining our service gives you better control over the value of your Fenny Stratford leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Hugo, came very near to the eighty-year threshold with the lease on his garden flat in Fenny Stratford. Having purchased his property 18 years ago, the length of the lease was of no bearing. Fortunately, he noticed he needed to take action soon on Extending the lease. Hugo extended the lease just under the wire in January. Hugo and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had slipped lower than 80 years, the sum would have escalated by a minimum £850.
Mr Milo Ward was assigned a lease of a one bedroom apartment in Fenny Stratford in April 2007. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable flats in Fenny Stratford with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed in 2094. Considering the 69 years unexpired we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.
Last Winter we were e-mailed by Dr Y Lambert , who took over the lease of a first floor flat in Fenny Stratford in May 1997. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical properties in Fenny Stratford with an extended lease were worth £216,000. The mid-range amount of ground rent was £60 billed per annum. The lease finished on 15 January 2083. Taking into account 58 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.