The re-sale value of a leasehold property in Fillongley depends on how long the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be concluded prior to the 80 year cut off point. Statute entitles Fillongley qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Fillongley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fillongley valuers.
Two years ago Edward, came seriously close to the 80-year threshold with the lease on his one bedroom apartment in Fillongley. Having purchased his flat twenty years ago, the lease term was of no relevance. As luck would have it, he realised he would imminently be paying an inflated amount for a lease extension. Edward extended the lease at the eleventh hour in June. Edward and the landlord who owned the flat above subsequently settled on an amount of £5,500 . If he not met the deadline, the amount would have escalated by at least £1,125.
Last Christmas we were called by Mr Alex Harris , who owned a basement apartment in Fillongley in April 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Fillongley with 100 year plus lease were valued around £257,800. The average ground rent payable was £65 invoiced yearly. The lease lapsed in 2090. Taking into account 65 years remaining we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.
Last Autumn we were contacted by Dr D Cooper , who acquired a newly refurbished apartment in Fillongley in June 2010. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar residencies in Fillongley with a long lease were valued around £191,400. The average amount of ground rent was £55 billed annually. The lease concluded on 9 February 2079. Having 54 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 not including costs.