Fleet leases on residential deteriorating in value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Fleet will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Fleet leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her ground floor flat in Fleet, Lily initiated the lease extension process just as the lease was coming close to the all-important 80-year deadline. The transaction completed in May 2007. The freeholder’s costs were negotiated to below 650 pounds.
In 2011 we were phoned by Mr Mason Watson who, having purchased a recently refurbished flat in Fleet in January 2002. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative flats in Fleet with a long lease were in the region of £233,200. The average ground rent payable was £60 billed every twelve months. The lease came to a finish in 2086. Given that there were 61 years outstanding we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.
Mrs Chantelle Bertrand took over the lease of a basement flat in Fleet in February 2010. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar properties in Fleet with 100 year plus lease were in the region of £171,800. The average ground rent payable was £55 collected per annum. The lease came to a finish in 2075. Considering the 50 years remaining we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including expenses.