Unfortunately that a Fenny Stratford residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Fenny Stratford property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term slips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Fenny Stratford will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Fenny Stratford,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 Fenny Stratford valuers.
Subsequent to lengthy correspondence with the freeholder of her two bedroom flat in Fenny Stratford, Kirsty initiated the lease extension process just as her lease was nearing the critical 80-year mark. The transaction was finalised in January 2008. The freeholder’s charges were negotiated to less than 500 pounds.
Mrs V Roux took over the lease of a basement flat in Fenny Stratford in April 1999. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable homes in Fenny Stratford with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease expired on 3 January 2098. Given that there were 73 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
Last Winter we were e-mailed by Mr Dylan Hernández , who took over the lease of a first floor apartment in Fenny Stratford in May 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative premises in Fenny Stratford with a long lease were in the region of £243,000. The average amount of ground rent was £65 invoiced yearly. The lease ran out in 2088. Taking into account 63 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.