As the the remaining lease term of a Fetcham domestic lease decreases so does its value and therefore the value of your property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Fetcham will qualify for this right; that being said a lawyer will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Fetcham with more than 100 years unexpired 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Fetcham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fetcham valuers.
Last October Nathaniel, started to get near to the eighty-year threshold with the lease on his basement flat in Fetcham. In buying his flat two decades ago, the unexpired term was of no interest. As luck would have it, he recognised he needed to take action soon on a lease extension. Nathaniel arranged for a lease extension at the eleventh hour last September. Nathaniel and the landlord ultimately settled on the final figure of £5,000 . If the lease had descended to less than eighty years, the figure would have escalated by a minimum £1,025.
Mrs C Wood took over the lease of a recently refurbished flat in Fetcham in May 2002. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparative homes in Fetcham with a long lease were valued around £193,400. The average ground rent payable was £65 invoiced monthly. The lease came to a finish on 2 July 2085. Having 59 years remaining we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including legals.
Dr William Baker owned a first floor flat in Fetcham in August 2001. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar residencies in Fetcham with 100 year plus lease were valued about £255,000. The mid-range amount of ground rent was £50 collected annually. The lease terminated on 25 February 2096. Taking into account 70 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.