Finchampstead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Finchampstead tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Finchampstead you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Finchampstead with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Santander | |
| TSB | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Finchampstead,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Finchampstead valuers.
George was the the leasehold owner of a conversion apartment in Finchampstead being marketed with a lease of a little over 59 years remaining. George informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Dr C Hill acquired a ground floor apartment in Finchampstead in October 1998. We are asked if we could estimate the price could be for a 90 year lease extension. Similar homes in Finchampstead with an extended lease were worth £265,000. The average amount of ground rent was £55 collected annually. The lease lapsed on 21 September 2100. Taking into account 74 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.
Mr and Mrs. P Lefèvre was assigned a lease of a ground floor flat in Finchampstead in March 2000. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Similar residencies in Finchampstead with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 collected monthly. The lease ended in 2080. Considering the 54 years remaining we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of costs.