Top reasons for Finchampstead lease extension

Top reasons for lease extension now:

A Finchampstead leasehold property depreciates with the years remaining on the lease.

As the length of the unexpired term of a Finchampstead residential lease decreases so does its value and therefore the value of your property. If the lease has, beyond 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Finchampstead will meet the qualifying criteria; nevertheless a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

Finchampstead property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not loan monies on a short lease

Nearly all mortgage companies will be unwilling to lend on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will likely encounter difficulties in obtaining a mortgage and this could result in your Finchampstead property being difficult to sell or refinance.

Get in touch with one of our Finchampstead lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you better control over the value of your Finchampstead leasehold, as your property will be more valuable and saleable 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.

Finchampstead Lease Extension Case Summaries:

Archie, Finchampstead, Berkshire

In recent months Archie, came very near to the eighty-year threshold with the lease on his leasehold flat in Finchampstead. Having bought his property 19 years ago, the unexpired term was of no interest. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Archie arranged for a lease extension just under the wire last April. Archie and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If the lease had dropped lower than eighty years, the amount would have gone up by at least £1,100.

Finchampstead case:

In 2014 we were contacted by Mrs I Bailey who, having took over the lease of a studio apartment in Finchampstead in July 2011. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar homes in Finchampstead with a long lease were in the region of £173,800. The average amount of ground rent was £60 collected annually. The lease lapsed on 8 August 2081. Taking into account 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.

Finchampstead case:

In 2012 we were contacted by Mr V Walker who, having moved into a recently refurbished flat in Finchampstead in August 1998. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Finchampstead with an extended lease were valued around £235,200. The mid-range amount of ground rent was £45 billed quarterly. The lease concluded in 2092. Having 66 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.