Fleet leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease drops below eighty years - otherwise a higher premium will be due. Flat owners in Fleet will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 Fleet can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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 in-depth market knowledge procuring Fleet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley owned a conversion apartment in Fleet on the market with a lease of fraction over sixty years outstanding. Stanley on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Stanley to invoke his statutory right. Stanley procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last May we were e-mailed by Mr and Mrs. H Sharif , who bought a first floor apartment in Fleet in May 2012. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Identical residencies in Fleet with an extended lease were valued around £205,000. The average amount of ground rent was £50 collected yearly. The lease ran out on 13 June 2105. Taking into account 79 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
Mr Muhammad Gunderson bought a basement flat in Fleet in August 2008. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable properties in Fleet with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease ended on 20 August 2094. Given that there were 68 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.