Farnham Common leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Farnham Common residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Farnham Common you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Farnham Common,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Farnham Common valuers.
Harrison owned a conversion flat in Farnham Common on the market with a lease of fraction over fifty eight years left. Harrison informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant 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 Harrison to exercise his statutory right. Harrison obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
In 2012 we were approached by Mr and Mrs. P Roux who, having purchased a first floor apartment in Farnham Common in November 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative premises in Farnham Common with a long lease were valued around £246,800. The mid-range ground rent payable was £60 billed every twelve months. The lease finished on 14 February 2075. Taking into account 50 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus expenses.
Dr N Moore purchased a first floor flat in Farnham Common in March 2004. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable premises in Farnham Common with a long lease were valued about £203,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease expiry date was in 2086. Given that there were 61 years as a residual term we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus costs.