There is no doubt about it a leasehold property in Fulwell is a wasting asset as a result of the shortening lease. If the lease has, in excess of one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Fulwell will meet the qualifying criteria; nevertheless a conveyancer 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.
Leasehold properties in Fulwell with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| 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. |
Using our service gives you better control over the value of your Fulwell leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Joseph, came critically near to the 80-year mark with the lease on his ground floor apartment in Fulwell. Having purchased his flat two decades ago, the lease term was of no relevance. As luck would have it, he realised he needed to take steps soon on a lease extension. Joseph arranged for a lease extension just under the wire last May. Joseph and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If he had missed the deadline, the price would have become more costly by a minimum £975.
In 2011 we were called by Mr and Mrs. A Hernández who, having acquired a studio flat in Fulwell in February 2012. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Fulwell with an extended lease were in the region of £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 8 January 2082. Taking into account 56 years remaining we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.
An example of a Lease Extension case for a Fulwell flat is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case was in relation to 1 flat. The unexpired lease term was 60.45 years.