The re-sale value of a leasehold property in Fenton is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded in advance of the eighty year threshold. Current legislation enables Fenton qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Fenton with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Fenton can be a difficult process. We recommend you get 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 Fenton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her leasehold flat in Fenton, Mia started the lease extension process as the eighty year deadline was quickly approaching. The lease extension completed in November 2010. The freeholder’s fees were kept to an absolute minimum.
Last April we were contacted by Ms G González , who moved into a first floor flat in Fenton in October 2005. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Identical premises in Fenton with an extended lease were valued about £255,000. The average ground rent payable was £50 billed quarterly. The lease elapsed on 10 April 2095. Considering the 70 years outstanding we calculated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 not including professional charges.
Ms Melissa Robinson bought a ground floor apartment in Fenton in September 2002. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical flats in Fenton with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 collected yearly. The lease ran out on 15 August 2075. Having 50 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of costs.