When it comes to long leasehold property in Finchampstead, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Anyone in Finchampstead with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When the lease term has fewer than eighty years outstanding, under the current Act the freeholder is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Finchampstead can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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 a wealth of experience 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.
Subsequent to unsuccessful correspondence with the freeholder of her ground floor apartment in Finchampstead, Lauren started the lease extension process as the eighty year deadline was swiftly coming. The lease extension was finalised in February 2015. The landlord’s costs were negotiated to slightly above 600 pounds.
In 2013 we were called by Mr and Mrs. I Moore who, having acquired a one bedroom apartment in Finchampstead in May 2007. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative homes in Finchampstead with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish in 2098. Having 76 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2011 we were contacted by Mrs Sophia Howard who, having purchased a one bedroom apartment in Finchampstead in September 1997. The question was if we could approximate the premium would be to prolong the lease by an additional years. Comparative homes in Finchampstead with a long lease were worth £173,800. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed in 2077. Taking into account 55 years remaining we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.