On the balance of probabilities where you own a flat in Fairford you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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 |
| 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. |
Retaining our service will provide you increased control over the value of your Fairford leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Thomas, came precariously near to the eighty-year mark with the lease on his leasehold flat in Fairford. In buying his flat two decades ago, the length of the lease was of no significance. Luckily, he realised he needed to take steps soon on a lease extension. Thomas extended the lease just under the wire last April. Thomas and the freeholder eventually agreed on the final figure of £5,000 . If the lease had slid below eighty years, the price would have escalated by at least £900.
In 2011 we were e-mailed by Mr and Mrs. O Miller who, having was assigned a lease of a ground floor apartment in Fairford in October 2011. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Identical premises in Fairford with an extended lease were in the region of £290,000. The average amount of ground rent was £45 billed quarterly. The lease expired on 4 October 2098. Given that there were 73 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Dr Charlie Young purchased a newly refurbished apartment in Fairford in August 2001. We are asked if we could estimate the price would be for a 90 year lease extension. Identical properties in Fairford with an extended lease were valued about £240,600. The average amount of ground rent was £65 collected monthly. The lease ended in 2087. Considering the 62 years unexpired we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.