It’s an underpublicised certainty that a Fenton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Fenton property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Fenton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Fenton with in excess of 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
Engaging our service gives you enhanced control over the value of your Fenton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Harry, came perilously close to the 80-year threshold with the lease on his leasehold flat in Fenton. Having purchased his flat twenty years ago, the length of the lease was of minimal relevance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Harry arranged for a lease extension at the eleventh hour last May. Harry and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had descended to less than 80 years, the premium would have gone up by a minimum £925.
Last Autumn we were e-mailed by Ms W Watson , who was assigned a lease of a purpose-built flat in Fenton in July 1997. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable properties in Fenton with an extended lease were valued about £260,000. The mid-range ground rent payable was £50 billed every twelve months. The lease termination date was on 28 October 2098. Given that there were 72 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Last Autumn we were contacted by Ms V Roux , who bought a purpose-built apartment in Fenton in November 2012. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Fenton with 100 year plus lease were valued around £256,600. The mid-range ground rent payable was £60 billed quarterly. The lease ran out on 17 August 2078. Taking into account 52 years unexpired we calculated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of professional charges.