Fforestfach leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Fforestfach will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Fforestfach,the lease extension solicitors 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 Fforestfach valuers.
Oscar was the the leasehold proprietor of a high value apartment in Fforestfach on the market with a lease of just over sixty years unexpired. Oscar on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert advice and secured an acceptable resolution informally and readily saleable.
Mrs B Patel took over the lease of a garden apartment in Fforestfach in February 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical residencies in Fforestfach with 100 year plus lease were valued around £267,600. The mid-range ground rent payable was £65 billed per annum. The lease lapsed in 2092. Taking into account 67 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of professional charges.
Dr C Johnson completed a basement apartment in Fforestfach in February 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative homes in Fforestfach with a long lease were worth £201,200. The mid-range amount of ground rent was £55 collected per annum. The lease concluded in 2081. Having 56 years unexpired we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including legals.