With a long leasehold property in Fairford, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than eighty years remaining. Residents in Fairford with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has under eighty years left, under the current statute the freeholder is entitled to calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Fairford leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Omar, started to get close to the eighty-year threshold with the lease on his leasehold flat in Fairford. In buying his property two decades ago, the length of the lease was of little importance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Omar extended the lease at the eleventh hour in August. Omar and the landlord who owned the flat above eventually settled on a premium of £5,000 . If he had missed the deadline, the figure would have escalated by at least £1,050.
In 2009 we were called by Dr E Michel who, having moved into a one bedroom flat in Fairford in November 2006. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparable homes in Fairford with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded in 2082. Considering the 56 years unexpired we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of fees.
Mrs Olivia Lambert bought a garden flat in Fairford in January 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Fairford with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ended on 26 January 2102. Taking into account 76 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.