When it comes to residential leasehold property in Fulwell, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years left. Anyone in Fulwell with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has less than 80 years left, under the relevant legislation the landlord can calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Fulwell,the lease extension experts 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 Fulwell valuers.
Subsequent to protracted negotiations with the landlord of her studio apartment in Fulwell, Courtney started the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The legal work was finalised in October 2013. The landlord’s fees were restricted to under 550 GBP.
Last year we were called by Mr Kyle Clark , who purchased a one bedroom flat in Fulwell in January 2010. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Similar premises in Fulwell with an extended lease were valued around £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease termination date was on 8 March 2078. Having 53 years left we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 not including expenses.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired lease term was 60.45 years.