The only way is down when it comes to Fenny Stratford lease terms. Fenny Stratford leaseholds that have a lease term shorter than 80 years will reduce in market price even faster, and the cost of extending your lease will increase.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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. |
| 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. |
| 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. |
The conveyancers that we work with handle Fenny Stratford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After unsuccessful discussions with the freeholder of her two bedroom apartment in Fenny Stratford, Tia initiated the lease extension process as the 80 year threshold was rapidly approaching. The lease extension was concluded in November 2015. The landlord’s charges were restricted to under 450 pounds.
In 2012 we were contacted by Mr and Mrs. W James who, having owned a ground floor flat in Fenny Stratford in March 1995. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative premises in Fenny Stratford with a long lease were in the region of £267,600. The average ground rent payable was £65 invoiced quarterly. The lease lapsed on 26 January 2092. Having 67 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of legals.
Last Christmas we were e-mailed by Dr Kelsey Williams , who owned a one bedroom flat in Fenny Stratford in August 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Fenny Stratford with 100 year plus lease were valued around £201,200. The average amount of ground rent was £55 billed monthly. The lease expiry date was in 2081. Having 56 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.