The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Fenny Stratford may extend the lease for a further ninety years under legislation. Please think carefully before delaying your Fenny Stratford lease extension. Postponing that expense today simply increases the amount you will eventually be required to pay to extend the lease.
It is generally accepted 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 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Fenny Stratford valuers.
Last year Ryan, came dangerously near to the eighty-year threshold with the lease on his basement flat in Fenny Stratford. In buying his flat two decades ago, the length of the lease was of minimal concern. Thankfully, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Ryan was able to extend his lease at the eleventh hour last September. Ryan and the landlord ultimately agreed on an amount of £5,000 . If the lease had slipped below 80 years, the figure would have increased by at least £925.
Last month we were contacted by Mr and Mrs. M Bonnet , who bought a studio apartment in Fenny Stratford in November 2007. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparative flats in Fenny Stratford with a long lease were worth £184,000. The average ground rent payable was £55 collected monthly. The lease terminated in 2079. Having 53 years outstanding we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including fees.
Last Christmas we were called by Dr Noah Bailey , who took over the lease of a studio apartment in Fenny Stratford in June 2008. The question was if we could estimate the price could be to prolong the lease by 90 years. Comparative premises in Fenny Stratford with an extended lease were worth £290,000. The average ground rent payable was £45 collected quarterly. The lease lapsed on 20 August 2099. Taking into account 73 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.