Temple Fortune leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Temple Fortune tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Temple Fortune you really ought to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Temple Fortune leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Temple Fortune leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ethan was the the leasehold proprietor of a 2 bedroom flat in Temple Fortune on the market with a lease of just over sixty years unexpired. Ethan on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ethan to exercise his statutory right. Ethan procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Mr H Bernard purchased a one bedroom flat in Temple Fortune in November 2004. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Temple Fortune with an extended lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed per annum. The lease concluded on 24 October 2085. Taking into account 59 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus costs.
An example of a Lease Extension matter before the tribunal for a Temple Fortune property is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case was in relation to 1 flat. The unexpired term was 76 years.