With a long leasehold premises in Temple Fortune, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than eighty years left. Leasehold owners in Temple Fortune with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has below 80 years outstanding, under the relevant Act the freeholder can calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Temple Fortune can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Temple Fortune lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Archie owned a conversion apartment in Temple Fortune on the market with a lease of fraction over 61 years outstanding. Archie on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Archie to exercise his statutory right. Archie obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were approached by Mr and Mrs. I Fournier who, having owned a ground floor apartment in Temple Fortune in March 1999. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Temple Fortune with 100 year plus lease were worth £189,000. The average amount of ground rent was £55 billed monthly. The lease ended on 21 April 2079. Having 53 years as a residual term we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including costs.
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 remaining number of years on the lease was 76 years.