With a domestic leasehold premises in Fordingbridge, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years left. Leasehold owners in Fordingbridge with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once a lease has below 80 years left, under the current Act the landlord is entitled to calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Fordingbridge with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | 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. |
Irrespective of whether you are a tenant or a freeholder in Fordingbridge,the lease extension solicitors 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 Fordingbridge valuers.
Subsequent to protracted discussions with the freeholder of her studio apartment in Fordingbridge, Elizabeth initiated the lease extension process as the eighty year mark was fast nearing. The lease extension was concluded in May 2014. The landlord’s costs were kept to an absolute minimum.
Last Summer we were phoned by Mr and Mrs. S Lefèvre , who acquired a one bedroom apartment in Fordingbridge in July 2011. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparable properties in Fordingbridge with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 invoiced annually. The lease termination date was on 14 October 2089. Considering the 64 years unexpired we approximated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.
Last Autumn we were called by Mr and Mrs. R Rivera , who acquired a garden flat in Fordingbridge in May 2009. The question was if we could estimate the price would likely be to extend the lease by an additional years. Identical homes in Fordingbridge with 100 year plus lease were valued around £189,000. The mid-range ground rent payable was £55 billed annually. The lease ran out on 16 April 2078. Having 53 years unexpired we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.