Falconwood leases on residential deteriorating in value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher amount will be due. Leasehold owners in Falconwood will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and formalities to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Falconwood with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Falconwood,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Falconwood valuers.
Off the back of protracted negotiations with the landlord of her garden flat in Falconwood, Tia initiated the lease extension process as the eighty year threshold was quickly advancing. The legal work was finalised in February 2010. The landlord’s fees were restricted to less than 550 GBP.
In 2010 we were called by Mr P Morel who, having moved into a first floor apartment in Falconwood in August 1997. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparable residencies in Falconwood with an extended lease were worth £206,200. The mid-range ground rent payable was £60 collected per annum. The lease ended on 12 April 2081. Taking into account 56 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus costs.
An example of a Lease Extension matter before the tribunal for a Falconwood property is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case was in relation to 1 flat.