There is no doubt about it a leasehold flat or house in Fordingbridge is a wasting asset as a result of the shortening lease. Where the residual term has, over one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Fordingbridge will qualify for this right; however a lawyer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Fordingbridge can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 a wealth of experience dealing with Fordingbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Michael, started to get near to the eighty-year mark with the lease on his one bedroom flat in Fordingbridge. Having bought his property 19 years ago, the unexpired term was of minimal concern. As luck would have it, he recognised he would soon be paying an inflated amount for Extending the lease. Michael extended the lease at the eleventh hour in July. Michael and the freeholder via the management company subsequently agreed on a premium of £6,000 . If he had missed the deadline, the price would have increased by a minimum £850.
In 2009 we were approached by Mr and Mrs. O Mason who, having purchased a studio flat in Fordingbridge in August 2011. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable properties in Fordingbridge with an extended lease were valued around £205,000. The average ground rent payable was £50 collected per annum. The lease ended in 2104. Taking into account 78 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2013 we were called by Dr Stanley Pérez who, having completed a recently refurbished flat in Fordingbridge in March 2002. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Fordingbridge with a long lease were worth £267,600. The mid-range ground rent payable was £65 billed monthly. The lease ended on 23 January 2093. Taking into account 67 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of expenses.