Fulford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Fulford tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Fulford you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Fulford with over one hundred 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 home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Fulford can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Fulford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the freeholder of her ground floor flat in Fulford, Ashleigh started the lease extension process just as the lease was nearing the all-important eighty-year deadline. The lease extension was concluded in August 2009. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were approached by Dr Nathaniel Bonnet who, having moved into a first floor flat in Fulford in June 2012. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar properties in Fulford with an extended lease were valued around £250,000. The average amount of ground rent was £50 collected yearly. The lease lapsed on 22 October 2094. Taking into account 69 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
Dr R Miller completed a garden apartment in Fulford in January 1995. We are asked if we could estimate the price could be for a 90 year lease extension. Similar residencies in Fulford with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 collected quarterly. The lease termination date was in 2104. Having 79 years as a residual term we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.