Fleetwood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Fleetwood residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Fleetwood you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Fleetwood leasehold, as your property will be more valuable and saleable in respect of 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.
After unsuccessful discussions with the landlord of her leasehold apartment in Fleetwood, Victoria started the lease extension process just as the lease was approaching the critical 80-year deadline. The transaction completed in July 2008. The landlord’s costs were restricted to a tad over 600 pounds.
In 2009 we were called by Dr Hugo Martínez who, having completed a purpose-built flat in Fleetwood in March 1997. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical premises in Fleetwood with a long lease were worth £215,600. The mid-range ground rent payable was £45 collected quarterly. The lease ran out in 2088. Taking into account 62 years left we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including legals.
Last month we were approach by Mr and Mrs. L Cox , who owned a first floor flat in Fleetwood in May 1998. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar properties in Fleetwood with an extended lease were worth £265,000. The average ground rent payable was £50 billed monthly. The lease ran out on 24 August 2099. Given that there were 73 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.