As the the remaining lease term of a Fleet domestic lease diminished so does its value and therefore the value of your property. If the residual term has, more than one hundred years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Fleet will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Yorkshire Building Society | 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. |
Engaging our service will provide you enhanced control over the value of your Fleet leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tyler was the the leasehold owner of a studio apartment in Fleet being sold with a lease of just over 61 years unexpired. Tyler on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Tyler to exercise his statutory right. Tyler procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Christmas we were e-mailed by Dr G Lewis , who acquired a garden apartment in Fleet in October 1997. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Fleet with a long lease were worth £174,200. The average ground rent payable was £55 collected per annum. The lease termination date was on 1 October 2077. Considering the 51 years as a residual term we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus expenses.
Last Summer we were e-mailed by Mr and Mrs. N Brown , who was assigned a lease of a ground floor flat in Fleet in March 2007. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Fleet with a long lease were valued around £285,000. The average ground rent payable was £45 invoiced per annum. The lease finished in 2097. Given that there were 71 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.