Fenstanton leases on domestic deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease drops below 80 years - otherwise a higher premium will be payable. Leasehold owners in Fenstanton will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has started so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Fenstanton can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 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.
After unsuccessful discussions with the landlord of her two bedroom apartment in Fenstanton, Morgan commenced the lease extension process as the eighty year mark was fast approaching. The transaction was concluded in January 2008. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were contacted by Mrs Alexandra Adams who, having purchased a one bedroom flat in Fenstanton in June 2006. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative premises in Fenstanton with a long lease were worth £261,600. The average ground rent payable was £60 invoiced annually. The lease terminated on 15 August 2078. Given that there were 52 years left we calculated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of costs.
In 2013 we were called by Dr Joshua Scott who, having owned a one bedroom apartment in Fenstanton in July 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Fenstanton with an extended lease were in the region of £218,000. The average amount of ground rent was £45 billed annually. The lease concluded in 2089. Taking into account 63 years as a residual term we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including legals.