Finchampstead leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Finchampstead will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are also strict deadlines and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Finchampstead with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Finchampstead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of protracted negotiations with the landlord of her garden apartment in Finchampstead, Jodie started the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work was concluded in September 2008. The freeholder’s fees were restricted to less than 600 GBP.
Last Spring we were e-mailed by Mr and Mrs. G Turner , who moved into a first floor apartment in Finchampstead in October 2006. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Finchampstead with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 billed annually. The lease ended in 2086. Considering the 62 years left we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus expenses.
Dr E Turner purchased a one bedroom apartment in Finchampstead in November 2007. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Finchampstead with a long lease were valued about £265,000. The average ground rent payable was £50 collected per annum. The lease concluded in 2097. Having 73 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.