There is no doubt about it a leasehold property in Fetcham is a wasting asset as a result of the diminishing lease term. Where the lease has, over 125 years to run then this decrease may be fractional nevertheless 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 termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Many flat owners in Fetcham will meet the qualifying criteria; however a lawyer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| Virgin |
Using our service gives you increased control over the value of your Fetcham leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy discussions with the landlord of her ground floor apartment in Fetcham, Hannah started the lease extension process as the 80 year mark was quickly coming. The lease extension completed in January 2006. The landlord’s charges were negotiated to less than 700 pounds.
In 2013 we were e-mailed by Mr and Mrs. U Rose who, having moved into a one bedroom apartment in Fetcham in April 1999. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Fetcham with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed monthly. The lease termination date was on 18 February 2097. Given that there were 71 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
In 2014 we were approached by Mr and Mrs. U Robinson who, having took over the lease of a recently refurbished flat in Fetcham in March 1999. The question was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar flats in Fetcham with an extended lease were valued about £254,200. The mid-range ground rent payable was £60 billed annually. The lease concluded on 13 March 2077. Considering the 51 years outstanding we calculated the premium to the landlord to extend the lease to be within £43,700 and £50,600 not including expenses.