Fenstanton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Fenstanton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Fenstanton you really ought to investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Fenstanton flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Fenstanton with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Fenstanton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her leasehold apartment in Fenstanton, Freya commenced the lease extension process as the eighty year deadline was fast advancing. The lease extension was finalised in September 2014. The freeholder’s fees were negotiated to slightly above 700 pounds.
Dr Emma Pérez was assigned a lease of a studio apartment in Fenstanton in July 2000. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative properties in Fenstanton with an extended lease were in the region of £250,000. The average ground rent payable was £50 collected per annum. The lease termination date was in 2094. Given that there were 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Mr and Mrs. N Garcia took over the lease of a ground floor apartment in Fenstanton in April 2008. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Identical premises in Fenstanton with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished on 17 October 2105. Having 80 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.