As the the remaining lease term of a Fenstanton domestic lease lessens so does its value and therefore the value of your property. Where the lease has, beyond 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Most flat owners in Fenstanton will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Fenstanton with in excess of 100 years remaining 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Fenstanton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fenstanton valuers.
Following lengthy negotiations with the landlord of her ground floor flat in Fenstanton, Amelia initiated the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work completed in October 2010. The freeholder’s costs were kept to an absolute minimum.
Dr Lewis Sánchez completed a purpose-built flat in Fenstanton in April 1999. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Similar premises in Fenstanton with an extended lease were worth £200,800. The mid-range ground rent payable was £65 collected annually. The lease came to a finish on 11 November 2085. Having 60 years unexpired we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including costs.
In 2009 we were e-mailed by Ms W Mason who, having completed a newly refurbished flat in Fenstanton in March 2012. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Identical flats in Fenstanton with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease concluded in 2096. Taking into account 71 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.