For those whose Fordingbridge home is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Fordingbridge with in excess of one hundred years outstanding 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 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. |
Regardless of whether you are a tenant or a freeholder in Fordingbridge,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fordingbridge valuers.
Two years ago Felix, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Fordingbridge. In buying his flat twenty years ago, the unexpired term was of little interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Felix arranged for a lease extension just under the wire last August. Felix and the freeholder subsequently agreed on a premium of £5,000 . If the lease had gone lower than eighty years, the sum would have become more costly by a minimum £1,075.
Last year we were approach by Mr K López , who owned a studio apartment in Fordingbridge in September 2011. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar properties in Fordingbridge with a long lease were valued around £295,000. The average amount of ground rent was £45 collected every twelve months. The lease expired on 25 February 2100. Having 74 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Last Christmas we were called by Mr and Mrs. T Leroy , who acquired a first floor apartment in Fordingbridge in June 1997. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparative flats in Fordingbridge with an extended lease were worth £248,000. The average amount of ground rent was £65 billed annually. The lease expired on 11 June 2089. Taking into account 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including legals.