Finchampstead leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Finchampstead residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Finchampstead you really ought to investigate if your lease has between 70 and 90 years left. There are good reasons why a Finchampstead flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold premises in Finchampstead with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by 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. |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Finchampstead leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful correspondence with the landlord of her garden flat in Finchampstead, Megan started the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work was finalised in July 2012. The freeholder’s fees were kept to an absolute minimum.
Last year we were contacted by Dr Amy Mercier , who took over the lease of a recently refurbished flat in Finchampstead in July 2007. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Finchampstead with a long lease were valued about £285,000. The average ground rent payable was £55 collected monthly. The lease finished in 2105. Having 79 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.
Mrs G Thompson acquired a garden apartment in Finchampstead in September 2012. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Finchampstead with a long lease were valued around £193,400. The mid-range amount of ground rent was £65 collected quarterly. The lease end date was in 2085. Considering the 59 years remaining we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including legals.