Fleet leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Fleet will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Fleet with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Leeds Building Society | |
| National Westminster Bank | |
| TSB |
The conveyancing solicitors that we work with procure Fleet lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In 2014 Jack, came perilously near to the 80-year mark with the lease on his garden apartment in Fleet. Having purchased his home two decades ago, the length of the lease was of minimal significance. As luck would have it, he noticed he would soon be paying way over the odds for Extending the lease. Jack was able to extend his lease just in the nick of time last April. Jack and the freeholder in the end agreed on an amount of £5,500 . If the lease had dropped to less than eighty years, the price would have escalated by at least £1,025.
Last Winter we were approach by Mr and Mrs. B Gómez , who purchased a one bedroom apartment in Fleet in February 1997. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparative homes in Fleet with a long lease were valued about £275,000. The average amount of ground rent was £65 collected per annum. The lease termination date was in 2094. Taking into account 68 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.
Last Spring we were e-mailed by Mr and Mrs. V Lefebvre , who completed a one bedroom flat in Fleet in January 1998. We are asked if we could estimate the price could be for a ninety year lease extension. Similar properties in Fleet with an extended lease were worth £208,600. The mid-range ground rent payable was £60 billed quarterly. The lease expiry date was in 2083. Given that there were 57 years remaining we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.