Fairford leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher premium will be payable. Leasehold owners in Fairford will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not be entitled. There are also strict timetables and steps to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| Halifax | 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 30 years plus the term of the mortgage at the outset 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. |
Retaining our service will provide you better control over the value of your Fairford leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold proprietor of a high value apartment in Fairford on the market with a lease of fraction over 61 years outstanding. Ollie informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ollie to invoke his statutory right. Ollie procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Dr Emma Rose completed a purpose-built apartment in Fairford in July 1996. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar residencies in Fairford with an extended lease were in the region of £171,800. The mid-range ground rent payable was £55 billed every twelve months. The lease ended in 2076. Having 50 years as a residual term we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including fees.
Last Christmas we were approach by Mrs Samantha Johnson , who took over the lease of a ground floor apartment in Fairford in June 1997. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Fairford with an extended lease were worth £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease came to a finish on 25 March 2096. Taking into account 70 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.