Unfortunately that a Fleetwood residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Fleetwood property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term dips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Fleetwood will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Fleetwood with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Fleetwood,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fleetwood valuers.
Subsequent to unsuccessful negotiations with the freeholder of her studio flat in Fleetwood, Nicole started the lease extension process just as her lease was nearing the all-important eighty-year mark. The legal work was concluded in June 2006. The landlord’s costs were kept to an absolute minimum.
Last Spring we were phoned by Mrs F Cooper , who moved into a newly refurbished apartment in Fleetwood in June 1996. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical premises in Fleetwood with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ran out in 2086. Taking into account 60 years unexpired we estimated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of expenses.
Dr A Morgan acquired a recently refurbished flat in Fleetwood in November 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Fleetwood with a long lease were worth £260,000. The average ground rent payable was £50 invoiced annually. The lease concluded in 2097. Having 71 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.