It’s an underpublicised truth that a Finchampstead residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Finchampstead property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Finchampstead will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Finchampstead,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Finchampstead valuers.
Jason owned a high value flat in Finchampstead being marketed with a lease of a little over 61 years outstanding. Jason informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jason to exercise his statutory right. Jason obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Dr G Davies took over the lease of a one bedroom apartment in Finchampstead in October 2011. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable flats in Finchampstead with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 collected annually. The lease ran out in 2094. Having 69 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last year we were contacted by Dr Amelia Torres , who acquired a one bedroom flat in Finchampstead in July 2009. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Similar residencies in Finchampstead with 100 year plus lease were valued around £290,000. The mid-range amount of ground rent was £55 billed quarterly. The lease end date was on 26 October 2105. Taking into account 80 years left we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.