Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Finchampstead. Clearly, the period of lease left shortens over time. This may slip by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Finchampstead have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. You should give careful attention before putting off your Finchampstead lease extension. Holding off the cost now likely increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Finchampstead leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold owner of a 2 bedroom flat in Finchampstead on the market with a lease of a little over 61 years left. Jacob informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert advice and secured satisfactory resolution informally and sell the property.
Last Spring we were called by Mr and Mrs. P Green , who moved into a one bedroom apartment in Finchampstead in June 2009. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparable residencies in Finchampstead with 100 year plus lease were worth £191,000. The average amount of ground rent was £65 invoiced yearly. The lease concluded on 3 April 2083. Taking into account 58 years left we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of professional charges.
Mrs K Leroy bought a studio apartment in Finchampstead in July 1999. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar homes in Finchampstead with 100 year plus lease were valued around £250,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expired on 17 January 2094. Having 69 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.