The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Fenny Stratford have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Fenny Stratford lease extension. Putting off the costs now simply increases the amount you will eventually be required to pay to extend the lease.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you better control over the value of your Fenny Stratford leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian was the the leasehold owner of a conversion apartment in Fenny Stratford being marketed with a lease of a few days over sixty years unexpired. Sebastian informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2013 we were approached by Mr and Mrs. E Jones who, having was assigned a lease of a one bedroom flat in Fenny Stratford in November 1999. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable properties in Fenny Stratford with 100 year plus lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease concluded on 19 February 2089. Having 64 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 plus fees.
Mr and Mrs. W Mitchell completed a studio apartment in Fenny Stratford in February 2003. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative premises in Fenny Stratford with 100 year plus lease were valued about £189,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease concluded on 26 June 2078. Considering the 53 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.