Fleetwood leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Fleetwood residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Fleetwood you should check if your lease has between 70 and ninety years left. There are compelling reasons why a Fleetwood leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Fleetwood can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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 in-depth market knowledge 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.
Last October Eli, came precariously near to the eighty-year threshold with the lease on his ground floor apartment in Fleetwood. In buying his property 18 years previously, the length of the lease was of minimal relevance. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Eli was able to extend his lease just under the wire last September. Eli and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If the lease had slipped to less than eighty years, the price would have gone up by a minimum £1,000.
In 2012 we were phoned by Mrs Zoe Hernández who, having took over the lease of a studio apartment in Fleetwood in March 2006. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar flats in Fleetwood with a long lease were worth £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished on 27 October 2097. Having 71 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Last Christmas we were contacted by Dr W Alexander , who completed a first floor flat in Fleetwood in August 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Identical premises in Fleetwood with an extended lease were worth £246,800. The mid-range ground rent payable was £60 billed every twelve months. The lease terminated on 7 July 2076. Given that there were 50 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of expenses.