Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Fillongley. Clearly, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the property needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Fillongley have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please give due deliberation before delaying your Fillongley lease extension. Putting off the cost now only increases the price you will eventually incur for a lease extension
It is generally considered that a residential leasehold with more than 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 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Fillongley,the lease extension solicitors that we work with will always be willing 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.
Jason was the the leasehold proprietor of a conversion apartment in Fillongley being sold with a lease of just over fifty eight years unexpired. Jason on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to invoke his statutory right. Jason obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2012 we were approached by Mr and Mrs. G Jones who, having took over the lease of a purpose-built apartment in Fillongley in October 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar premises in Fillongley with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 collected monthly. The lease ran out in 2100. Having 74 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Last month we were phoned by Dr J Martin , who bought a one bedroom flat in Fillongley in October 2009. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Fillongley with an extended lease were valued about £243,000. The mid-range ground rent payable was £65 billed per annum. The lease ran out on 4 January 2089. Taking into account 63 years outstanding we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.