The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Fairford can extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Fairford lease extension. Postponing that expense now simply increases the price you will eventually have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Fairford can be a difficult process. We recommend you obtain guidance from a lawyer 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 Fairford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful discussions with the freeholder of her one bedroom flat in Fairford, Mollie commenced the lease extension process just as her lease was approaching the crucial eighty-year threshold. The legal work was concluded in October 2011. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were phoned by Mr and Mrs. P Campbell who, having purchased a one bedroom apartment in Fairford in August 2008. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparative flats in Fairford with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced annually. The lease concluded on 17 June 2102. Taking into account 76 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
Dr Jamie Jackson completed a basement apartment in Fairford in January 2003. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Identical properties in Fairford with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 billed monthly. The lease concluded on 7 August 2091. Taking into account 65 years remaining we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including costs.