When it comes to long leasehold premises in Fulford, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Residents in Fulford with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. Once a lease has less than eighty years remaining, under the current Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Fulford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fulford valuers.
John was the the leasehold owner of a 2 bedroom flat in Fulford on the market with a lease of a few days over 59 years remaining. John informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were John to exercise his statutory right. John procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Last March we were contacted by Mr and Mrs. J Lambert , who was assigned a lease of a one bedroom apartment in Fulford in April 2000. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Fulford with a long lease were valued about £270,000. The mid-range amount of ground rent was £55 billed quarterly. The lease came to a finish in 2101. Taking into account 75 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
In 2011 we were phoned by Ms W Jones who, having acquired a purpose-built flat in Fulford in November 1999. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative residencies in Fulford with an extended lease were valued around £173,800. The average ground rent payable was £65 collected every twelve months. The lease ended in 2081. Having 55 years remaining we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of expenses.