Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Fenny Stratford. Clearly, the term of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Fenny Stratford have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. Do give due deliberation before delaying your Fenny Stratford lease extension. Putting off that expense now simply increases the price you will eventually incur to extend your lease
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
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.
In recent months Stanley, started to get close to the 80-year threshold with the lease on his leasehold apartment in Fenny Stratford. Having purchased his home 18 years previously, the length of the lease was of no significance. Fortunately, he became aware that he needed to take action soon on Extending the lease. Stanley arranged for a lease extension just under the wire last April. Stanley and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the sum would have increased by at least £1,125.
In 2014 we were e-mailed by Mr and Mrs. R Mercier who, having moved into a basement flat in Fenny Stratford in September 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Fenny Stratford with an extended lease were in the region of £181,600. The average ground rent payable was £55 invoiced yearly. The lease finished on 8 May 2076. Considering the 52 years remaining we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.
In 2009 we were called by Dr D Kelly who, having owned a one bedroom apartment in Fenny Stratford in September 2005. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Fenny Stratford with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 collected yearly. The lease came to a finish on 4 September 2096. Given that there were 72 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.