Unfortunately that a Falconwood residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Falconwood property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. Most leasehold owners in Falconwood will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Falconwood with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Falconwood leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Henry, came precariously near to the 80-year mark with the lease on his first floor flat in Falconwood. Having bought his property two decades ago, the length of the lease was of no concern. Thankfully, he realised he needed to take steps soon on Extending the lease. Henry arranged for a lease extension just in the nick of time last August. Henry and the freeholder via the management company eventually settled on sum of £5,500 . If he had missed the deadline, the figure would have become more costly by at least £975.
Dr A Moreau owned a garden apartment in Falconwood in January 2001. The question was if we could estimate the premium would likely be for a ninety year lease extension. Identical premises in Falconwood with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 collected yearly. The lease ended in 2099. Considering the 75 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Falconwood flat is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case was in relation to 1 flat.