Fenton leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease drops below eighty years - otherwise a higher amount will be due. Flat owners in Fenton will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are also strict deadlines and formalities to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Fenton,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 experience and the close ties they enjoy with Fenton valuers.
Isaac owned a conversion flat in Fenton being marketed with a lease of a few days over 72 years left. Isaac on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Dr D Young moved into a garden flat in Fenton in March 1995. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in Fenton with an extended lease were valued around £275,000. The average amount of ground rent was £55 collected yearly. The lease ran out in 2103. Taking into account 77 years as a residual term we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.
Last year we were approach by Dr Ben Ricardo , who was assigned a lease of a ground floor apartment in Fenton in August 2006. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar residencies in Fenton with a long lease were in the region of £183,600. The average amount of ground rent was £65 collected yearly. The lease elapsed in 2083. Given that there were 57 years outstanding we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.