The nearer a residential lease in Fenny Stratford nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 99 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. Most flat owners in Fenny Stratford will qualify for this right; that being said a conveyancer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Fenny Stratford with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
| 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 Fenny Stratford leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Liam was the the leasehold proprietor of a conversion apartment in Fenny Stratford being sold with a lease of fraction over sixty years outstanding. Liam informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Liam to invoke his statutory right. Liam obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Summer we were called by Mr J Clark , who acquired a one bedroom flat in Fenny Stratford in January 2009. The question was if we could approximate the premium would be to extend the lease by 90 years. Comparable residencies in Fenny Stratford with a long lease were in the region of £181,600. The average amount of ground rent was £55 collected annually. The lease elapsed on 20 July 2077. Taking into account 52 years unexpired we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including costs.
Last Summer we were approach by Mrs Alice Martin , who moved into a basement apartment in Fenny Stratford in January 2001. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical residencies in Fenny Stratford with an extended lease were valued about £285,000. The average amount of ground rent was £45 collected per annum. The lease ran out on 20 February 2097. Considering the 72 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.