The market value of Fairford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service will provide you increased control over the value of your Fairford leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Leo owned a 2 bedroom apartment in Fairford being sold with a lease of a little over sixty years remaining. Leo on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Leo to invoke his statutory right. Leo obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2012 we were phoned by Dr K Morgan who, having was assigned a lease of a basement flat in Fairford in October 1995. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Identical residencies in Fairford with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 invoiced every twelve months. The lease came to a finish on 1 June 2078. Taking into account 52 years outstanding we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.
Last year we were called by Dr M Wood , who owned a first floor flat in Fairford in January 2007. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Similar residencies in Fairford with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 billed annually. The lease came to a finish on 24 January 2098. Having 72 years outstanding we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus fees.