On the balance of probabilities where you own a flat in Fenstanton you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Fenstanton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Freddie, came seriously close to the 80-year mark with the lease on his two bedroom apartment in Fenstanton. Having purchased his flat two decades ago, the length of the lease was of little importance. Fortunately, he noticed he needed to take steps soon on a lease extension. Freddie extended the lease just under the wire last June. Freddie and the freeholder ultimately agreed on an amount of £6,000 . If he failed to meet the deadline, the sum would have increased by a minimum £1,075.
Last Christmas we were approach by Mr Y Jackson , who purchased a one bedroom flat in Fenstanton in July 2002. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable residencies in Fenstanton with an extended lease were valued about £290,000. The average amount of ground rent was £60 billed every twelve months. The lease expired on 25 July 2104. Given that there were 80 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.
Dr A Collins bought a garden apartment in Fenstanton in May 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Fenstanton with an extended lease were valued about £200,800. The average amount of ground rent was £65 billed annually. The lease concluded in 2084. Considering the 60 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of legals.