For anyone whose Fitzrovia home is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Fitzrovia can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Fitzrovia lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jason, came perilously close to the 80-year threshold with the lease on his ground floor flat in Fitzrovia. In buying his property 19 years previously, the unexpired term was of little concern. by good luck, he noticed he would imminently be paying an inflated amount for Extending the lease. Jason arranged for a lease extension at the eleventh hour in March. Jason and the freeholder eventually settled on an amount of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £875.
Ms P Allen purchased a one bedroom apartment in Fitzrovia in August 1996. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable properties in Fitzrovia with 100 year plus lease were worth £237,600. The average amount of ground rent was £45 invoiced per annum. The lease came to a finish in 2092. Considering the 67 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including costs.
An example of a Freehold Enfranchisement case for a Fitzrovia residence is 20 Avonwick Road in July 2013. The Tribunal was dealing with an application under Section 26 of the Leasehold Reform Housing and Urban Development Act 1993 for a determination of the freehold value of the property. It was concluded that the price to be paid was Fifteen Thousand Nine Hundred and Seventy (£15,970) divided as to £8,200 for Flat 20 and £7,770 for Flat 20A This case affected 1 flat. The unexpired residue of the current lease was 73.26 years.