It’s a harsh truth that a Fairford residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Fairford property prices.Where your lease has approximately 90 years left, you should 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 slips below eighty years - otherwise a higher amount will be due. Most flat owners in Fairford will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Fairford with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Santander | |
| Skipton Building Society |
The conveyancing solicitors that we work with procure Fairford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Austin owned a 2 bedroom apartment in Fairford being marketed with a lease of a few days over fifty eight years outstanding. Austin on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Austin to exercise his statutory right. Austin procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Winter we were contacted by Mr and Mrs. V Brown , who owned a one bedroom apartment in Fairford in September 2010. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar homes in Fairford with a long lease were in the region of £257,800. The average ground rent payable was £65 invoiced annually. The lease concluded on 10 October 2091. Having 65 years remaining we calculated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including legals.
Last year we were approach by Mr L Lefèvre , who acquired a studio apartment in Fairford in April 2011. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Comparable residencies in Fairford with an extended lease were worth £196,400. The average ground rent payable was £55 invoiced quarterly. The lease lapsed on 28 April 2080. Given that there were 54 years remaining we calculated the compensation to the freeholder to extend the lease to be between £35,200 and £40,600 exclusive of professional charges.