Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Farnham Common. Inevitably, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Farnham Common have the legal entitlement to extend the lease for an additional ninety years under statute. Do give careful attention before putting off your Farnham Common lease extension. Holding off that expense now only increases the price you will ultimately incur for a lease extension
Leasehold residencies in Farnham Common with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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 |
Lease extensions in Farnham Common can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 Farnham Common lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the freeholder of her studio apartment in Farnham Common, Erin started the lease extension process as the 80 year deadline was fast advancing. The transaction completed in June 2012. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were phoned by Mr C Wright , who purchased a basement apartment in Farnham Common in September 2000. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative residencies in Farnham Common with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 billed monthly. The lease terminated on 22 November 2075. Taking into account 51 years remaining we estimated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 plus fees.
Last Christmas we were called by Dr Caleb Anderson , who acquired a newly refurbished flat in Farnham Common in March 2010. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar premises in Farnham Common with 100 year plus lease were in the region of £210,600. The average ground rent payable was £45 collected per annum. The lease terminated in 2086. Considering the 62 years remaining we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 not including expenses.