When it comes to residential leasehold premises in Fenstanton, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years left. Residents in Fenstanton with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once a lease has under 80 years outstanding, under the relevant Act the freeholder can calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Fenstanton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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.
Subsequent to unsuccessful discussions with the freeholder of her purpose-built apartment in Fenstanton, Isabelle initiated the lease extension process just as her lease was coming close to the crucial 80-year mark. The lease extension was finalised in March 2006. The freeholder’s charges were kept to an absolute minimum.
Last August we were called by Dr A Garcia , who moved into a studio flat in Fenstanton in September 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical premises in Fenstanton with 100 year plus lease were in the region of £191,000. The average amount of ground rent was £65 billed per annum. The lease lapsed on 4 January 2083. Taking into account 58 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of expenses.
In 2011 we were e-mailed by Mr and Mrs. Y Collins who, having acquired a studio apartment in Fenstanton in March 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Identical homes in Fenstanton with a long lease were in the region of £250,000. The average amount of ground rent was £50 collected quarterly. The lease finished on 7 February 2094. Considering the 69 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.