Temple Fortune leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Temple Fortune tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Temple Fortune you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Temple Fortune can be a difficult process. We recommend you obtain professional help 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 Temple Fortune 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 Liam, came dangerously close to the eighty-year threshold with the lease on his garden apartment in Temple Fortune. In buying his flat twenty years previously, the unexpired term was of no importance. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Liam arranged for a lease extension at the eleventh hour last March. Liam and the freeholder in the end settled on a premium of £6,000 . If he had missed the deadline, the premium would have become more exhorbitant by at least £850.
In 2014 we were phoned by Mr and Mrs. F Scott who, having purchased a one bedroom flat in Temple Fortune in October 1995. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative properties in Temple Fortune with an extended lease were worth £208,600. The average amount of ground rent was £60 invoiced per annum. The lease end date was on 11 September 2082. Considering the 57 years remaining we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Temple Fortune premises is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case was in relation to 1 flat. The remaining number of years on the lease was 76 years.