The re-sale value of a leasehold property in Fulwell is impacted by how long the lease has left to run. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed well before the eighty year cut off point. Current legislation enables Fulwell qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Fulwell with over one hundred years remaining 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Fulwell can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 procuring Fulwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Reuben, came dangerously near to the 80-year mark with the lease on his ground floor apartment in Fulwell. In buying his property 18 years ago, the lease term was of little importance. by good luck, he recognised he needed to take action soon on Extending the lease. Reuben was able to extend his lease just under the wire last January. Reuben and the freeholder ultimately agreed on a premium of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £850.
Last Spring we were called by Ms Elizabeth Jackson , who moved into a purpose-built flat in Fulwell in September 2009. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Similar homes in Fulwell with a long lease were worth £183,600. The mid-range amount of ground rent was £65 collected yearly. The lease terminated on 14 May 2082. Considering the 57 years left we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including costs.
An example of a Lease Extension matter before the tribunal for a Fulwell premises 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 remaining number of years on the lease was 60.45 years.