There is no doubt about it a leasehold flat or house in Fulford is a wasting asset as a result of the diminishing lease term. If the residual term has, more than one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Fulford will meet the qualifying criteria; however a conveyancing solicitor can advise whether you qualify for a lease extension. In limited 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 property with more than one hundred years remaining is worth roughly the same 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 ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Fulford leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Seth owned a high value apartment in Fulford being sold with a lease of just over sixty years left. Seth on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Seth to invoke his statutory right. Seth obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Ms Millie Rodríguez moved into a purpose-built apartment in Fulford in June 1996. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative flats in Fulford with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected yearly. The lease elapsed in 2087. Considering the 62 years left we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 not including expenses.
In 2009 we were phoned by Mr and Mrs. U Robinson who, having purchased a studio flat in Fulford in March 2009. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Identical residencies in Fulford with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease elapsed on 14 May 2098. Considering the 73 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.