Unfortunately that a Fenstanton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Fenstanton property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Fenstanton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Fenstanton with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
In recent months Andrew, started to get near to the eighty-year threshold with the lease on his leasehold flat in Fenstanton. In buying his property 19 years ago, the unexpired term was of minimal relevance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Andrew extended the lease just in the nick of time last April. Andrew and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he had missed the deadline, the figure would have increased by at least £1,075.
Last year we were phoned by Mr and Mrs. M Bennett , who acquired a studio flat in Fenstanton in October 2008. The question was 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. Similar properties in Fenstanton with 100 year plus lease were valued around £290,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease lapsed in 2106. Having 80 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
Mr and Mrs. A Mitchell completed a basement apartment in Fenstanton in August 2000. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar properties in Fenstanton with an extended lease were valued around £200,800. The mid-range amount of ground rent was £65 collected yearly. The lease came to a finish in 2086. Having 60 years unexpired we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.