The market value of Temple Fortune leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is less than 80 years
Leasehold premises in Temple Fortune with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Austin, started to get close to the 80-year mark with the lease on his leasehold apartment in Temple Fortune. Having purchased his flat 19 years previously, the lease term was of little significance. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Austin arranged for a lease extension just ahead of time in August. Austin and the landlord eventually settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £925.
Dr B Campbell purchased a purpose-built flat in Temple Fortune in January 2011. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Identical flats in Temple Fortune with an extended lease were in the region of £300,000. The average ground rent payable was £50 billed monthly. The lease came to a finish in 2102. Taking into account 76 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
An example of a Lease Extension decision for a Temple Fortune flat 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 affected 1 flat. The unexpired term was 76 years.