It’s a harsh truth that a Fulwood residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Fulwood property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Fulwood will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Retaining our service gives you better control over the value of your Fulwood leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Theo was the the leasehold owner of a conversion flat in Fulwood being marketed with a lease of fraction over sixty years remaining. Theo informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Theo to invoke his statutory right. Theo procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr Dexter Fournier was assigned a lease of a ground floor flat in Fulwood in January 2011. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical residencies in Fulwood with an extended lease were worth £285,000. The average ground rent payable was £55 invoiced quarterly. The lease expiry date was in 2105. Considering the 79 years remaining we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
In 2012 we were contacted by Mr Samuel Cook who, having bought a recently refurbished apartment in Fulwood in October 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Fulwood with an extended lease were worth £193,400. The average ground rent payable was £65 invoiced yearly. The lease ran out on 16 November 2085. Considering the 59 years left we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of costs.