Fernhill Heath residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold premises in Fernhill Heath with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Fernhill Heath,the lease extension experts 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 Fernhill Heath valuers.
Two years ago Cameron, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Fernhill Heath. Having purchased his property twenty years ago, the lease term was of minimal significance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Cameron extended the lease just under the wire in September. Cameron and the freeholder eventually agreed on an amount of £5,500 . If he not met the deadline, the sum would have escalated by at least £850.
Last year we were phoned by Mrs Isobel Wilson , who took over the lease of a garden flat in Fernhill Heath in November 1996. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Similar properties in Fernhill Heath with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced annually. The lease expired on 28 September 2100. Given that there were 74 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2013 we were approached by Mr Edward Edwards who, having took over the lease of a garden apartment in Fernhill Heath in May 1998. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Fernhill Heath with an extended lease were valued around £243,000. The average ground rent payable was £65 collected quarterly. The lease finished on 8 September 2089. Having 63 years unexpired we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including costs.