Finedon leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Finedon will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Finedon can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
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 dealing with Finedon 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 lengthy negotiations with the landlord of her leasehold flat in Finedon, Hannah started the lease extension process just as the lease was approaching the all-important eighty-year deadline. The legal work was finalised in April 2005. The landlord’s charges were negotiated to slightly above four hundred pounds.
Dr P François purchased a garden apartment in Finedon in January 2012. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparative residencies in Finedon with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ran out in 2102. Considering the 76 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Last month we were e-mailed by Dr Sophia Vincent , who completed a studio flat in Finedon in September 1996. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar premises in Finedon with an extended lease were valued around £176,200. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated in 2082. Having 56 years unexpired we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus professional charges.