Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Fordingbridge. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Fordingbridge have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give due consideration before delaying your Fordingbridge lease extension. Holding off the cost now likely increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Fordingbridge,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fordingbridge valuers.
Tommy owned a high value flat in Fordingbridge being marketed with a lease of just over 72 years unexpired. Tommy informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tommy to invoke his statutory right. Tommy procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Dr T Young owned a one bedroom flat in Fordingbridge in November 2010. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar properties in Fordingbridge with an extended lease were valued about £280,000. The average ground rent payable was £45 billed yearly. The lease concluded in 2094. Taking into account 69 years left we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.
Mr and Mrs. U Hernández acquired a first floor flat in Fordingbridge in October 2003. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar flats in Fordingbridge with an extended lease were worth £216,000. The average amount of ground rent was £60 billed quarterly. The lease elapsed on 15 February 2083. Considering the 58 years remaining we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.