It’s a harsh certainty that a Fordingbridge residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Fordingbridge property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Fordingbridge will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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 will provide you enhanced control over the value of your Fordingbridge leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Leon, started to get near to the eighty-year mark with the lease on his first floor apartment in Fordingbridge. In buying his flat 19 years ago, the lease term was of minimal relevance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Leon extended the lease just under the wire last March. Leon and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If he had missed the deadline, the sum would have increased by at least £950.
Last November we were approach by Dr Ali Rodríguez , who moved into a one bedroom apartment in Fordingbridge in May 1995. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative premises in Fordingbridge with 100 year plus lease were worth £181,600. The average ground rent payable was £55 collected every twelve months. The lease ended in 2078. Given that there were 52 years remaining we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of fees.
Mr and Mrs. V Parker bought a basement apartment in Fordingbridge in July 1996. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar flats in Fordingbridge with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 collected yearly. The lease expired on 12 June 2098. Considering the 72 years left we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus legals.