It’s an underpublicised truth that a Fulwood residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Fulwood property prices.Once your lease nears 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 eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Fulwood will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Fulwood with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service gives you better control over the value of your Fulwood leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jackson owned a studio apartment in Fulwood on the market with a lease of a few days over sixty years left. Jackson on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Last month we were called by Dr Bethan Roberts , who completed a studio apartment in Fulwood in May 2010. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Identical homes in Fulwood with an extended lease were valued around £191,000. The mid-range ground rent payable was £65 collected monthly. The lease elapsed in 2083. Having 58 years left we approximated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 not including professional charges.
Mr and Mrs. N Wright bought a garden flat in Fulwood in July 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Fulwood with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 28 October 2094. Taking into account 69 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.