Fenstanton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Fenstanton tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Fenstanton you should see if your lease has between seventy and ninety years remaining. There are good reasons why a Fenstanton flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Fenstanton with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancing solicitor we work with provide it.
Noah owned a high value flat in Fenstanton on the market with a lease of a little over 61 years unexpired. Noah informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Noah to invoke his statutory right. Noah obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
In 2013 we were approached by Mr N Morris who, having completed a one bedroom flat in Fenstanton in April 2007. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Identical residencies in Fenstanton with 100 year plus lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced annually. The lease ran out on 18 March 2090. Given that there were 64 years remaining we approximated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 plus expenses.
In 2014 we were called by Mr John Hill who, having purchased a ground floor apartment in Fenstanton in January 1996. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Fenstanton with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 billed monthly. The lease end date was on 11 April 2101. Taking into account 75 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.