Fitzrovia leases on residential deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Fitzrovia will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Fitzrovia with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Irrespective of whether you are a tenant or a landlord in Fitzrovia,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 experience and the close ties they enjoy with Fitzrovia valuers.
Two years ago William, came very close to the eighty-year mark with the lease on his one bedroom apartment in Fitzrovia. In buying his flat two decades ago, the length of the lease was of little interest. Luckily, he noticed he would imminently be paying way over the odds for a lease extension. William was able to extend his lease just under the wire last January. William and the freeholder via the management company eventually agreed on the final figure of £5,000 . If he not met the deadline, the figure would have increased by a minimum £875.
Dr U Johnson was assigned a lease of a recently refurbished flat in Fitzrovia in August 1997. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparable residencies in Fitzrovia with a long lease were valued around £265,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed in 2100. Considering the 74 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
An example of a Freehold Enfranchisement decision 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 related to 1 flat. The number of years remaining on the existing lease(s) was 73.26 years.