The re-sale value of a leasehold property in Finchampstead is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that formalities can be finalised in advance of the 80 year threshold. Statute enables Finchampstead qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Finchampstead can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Finchampstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted negotiations with the freeholder of her two bedroom flat in Finchampstead, Alice commenced the lease extension process just as the lease was nearing the crucial eighty-year mark. The legal work completed in May 2008. The freeholder’s costs were negotiated to about 550 GBP.
Dr Francesca Bernard owned a garden apartment in Finchampstead in September 2012. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparable homes in Finchampstead with a long lease were worth £227,800. The mid-range ground rent payable was £45 invoiced yearly. The lease elapsed in 2090. Taking into account 65 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.
In 2013 we were called by Mr and Mrs. D François who, having took over the lease of a garden apartment in Finchampstead in August 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Finchampstead with 100 year plus lease were valued about £275,000. The average amount of ground rent was £55 billed every twelve months. The lease terminated in 2101. Having 76 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.