As the length of the unexpired term of a Fleetwood domestic lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner rather than later. Most flat owners in Fleetwood will qualify for this right; that being said a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Fleetwood with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 |
|---|---|
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Fleetwood can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Fleetwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kai owned a conversion flat in Fleetwood on the market with a lease of just over 61 years left. Kai informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Kai to exercise his statutory right. Kai obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
Last Summer we were contacted by Mr Tommy Pérez , who purchased a first floor apartment in Fleetwood in September 2004. The question was if we could estimate the price would be for a ninety year lease extension. Similar residencies in Fleetwood with an extended lease were in the region of £232,800. The average ground rent payable was £45 billed quarterly. The lease finished on 23 July 2091. Having 65 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
Dr H Moreau was assigned a lease of a first floor flat in Fleetwood in July 1997. The question was if we could approximate the premium would be to extend the lease by 90 years. Comparable flats in Fleetwood with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 billed quarterly. The lease expiry date was on 1 August 2102. Taking into account 76 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.