Fenstanton leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Leasehold owners in Fenstanton will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are also strict deadlines and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancers that we work with procure Fenstanton 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 lawyer we work with provide it.
In 2014 Jason, started to get near to the 80-year mark with the lease on his studio flat in Fenstanton. Having purchased his flat two decades ago, the lease term was of little bearing. by good luck, he became aware that he needed to take steps soon on Extending the lease. Jason arranged for a lease extension at the eleventh hour last May. Jason and the freeholder in the end agreed on sum of £5,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £900.
Dr Nathan Michel bought a garden apartment in Fenstanton in November 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical properties in Fenstanton with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease lapsed on 8 September 2096. Given that there were 70 years unexpired we approximated the premium to the landlord to extend the lease to be within £10,500 and £12,000 exclusive of costs.
Last Summer we were contacted by Mr and Mrs. I Richardson , who owned a one bedroom apartment in Fenstanton in June 2012. The question was if we could estimate the price could be to extend the lease by an additional years. Identical homes in Fenstanton with a long lease were valued around £246,800. The average amount of ground rent was £60 invoiced monthly. The lease came to a finish in 2076. Taking into account 50 years left we estimated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 not including expenses.