Fulwood leases on residential deteriorating in value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease dips below eighty years - otherwise a higher premium will be due. Flat owners in Fulwood will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Fulwood with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Fulwood leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Eli, came perilously near to the 80-year threshold with the lease on his studio flat in Fulwood. In buying his home twenty years previously, the length of the lease was of minimal interest. As luck would have it, he realised he would soon be paying an inflated amount for Extending the lease. Eli was able to extend his lease just ahead of time last March. Eli and the freeholder via the management company in the end agreed on an amount of £6,000 . If he had missed the deadline, the premium would have become more exhorbitant by a minimum £1,125.
Last Autumn we were e-mailed by Mr and Mrs. K Flores , who owned a newly refurbished apartment in Fulwood in January 2009. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable properties in Fulwood with an extended lease were worth £200,800. The mid-range ground rent payable was £65 invoiced annually. The lease expiry date was in 2086. Having 60 years remaining we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including expenses.
In 2012 we were called by Dr M Dupont who, having completed a first floor flat in Fulwood in August 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Fulwood with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 billed annually. The lease terminated in 2097. Having 71 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.