It’s an underpublicised truth that a Fenstanton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Fenstanton property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Fenstanton will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Fenstanton with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Fenstanton can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Fenstanton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the landlord of her purpose-built apartment in Fenstanton, Hannah commenced the lease extension process as the eighty year deadline was rapidly nearing. The lease extension was concluded in February 2008. The freeholder’s charges were kept to an absolute minimum.
Last month we were e-mailed by Mr Caleb Petit , who owned a garden apartment in Fenstanton in October 1998. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable properties in Fenstanton with 100 year plus lease were in the region of £265,000. The average ground rent payable was £55 billed annually. The lease ran out in 2100. Given that there were 74 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
Ms N Hill took over the lease of a basement apartment in Fenstanton in September 1999. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar residencies in Fenstanton with an extended lease were worth £166,400. The mid-range amount of ground rent was £60 collected monthly. The lease end date was on 11 March 2080. Given that there were 54 years left we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including expenses.