Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Fenstanton. Clearly, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Fenstanton have the legal entitlement to extend the lease for an additional ninety years under statute. Do give careful deliberation before putting off your Fenstanton lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 procure professional help from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Fenstanton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aaron was the the leasehold proprietor of a 2 bedroom apartment in Fenstanton on the market with a lease of fraction over fifty eight years unexpired. Aaron on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Aaron to invoke his statutory right. Aaron obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. E Thompson acquired a recently refurbished apartment in Fenstanton in February 2012. The question was if we could estimate the premium could be to prolong the lease by 90 years. Similar flats in Fenstanton with a long lease were worth £265,000. The average ground rent payable was £50 invoiced annually. The lease finished on 5 October 2098. Considering the 73 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2014 we were contacted by Dr R Brown who, having completed a basement flat in Fenstanton in April 1996. The question was if we could approximate the premium could be to extend the lease by 90 years. Comparable residencies in Fenstanton with an extended lease were valued about £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease expiry date was in 2078. Given that there were 53 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of professional charges.