Finchampstead leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Finchampstead will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and formalities to follow once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Finchampstead valuers.
James was the the leasehold owner of a high value apartment in Finchampstead on the market with a lease of fraction over 61 years outstanding. James informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend 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 James to invoke his statutory right. James obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Mr and Mrs. J López acquired a ground floor apartment in Finchampstead in June 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Finchampstead with an extended lease were in the region of £235,200. The average amount of ground rent was £45 invoiced yearly. The lease ran out in 2092. Given that there were 66 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
In 2011 we were e-mailed by Dr Kirsty Lee who, having bought a garden flat in Finchampstead in June 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative flats in Finchampstead with a long lease were worth £275,000. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed on 2 October 2103. Given that there were 77 years outstanding we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.