The value of Finedon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the unexpired lease term is less than 80 years
Leasehold properties in Finedon with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Finedon can be a difficult process. We recommend you obtain professional help from a lawyer 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.
During the course of the last few months Toby, came critically close to the eighty-year threshold with the lease on his ground floor apartment in Finedon. Having purchased his home two decades ago, the unexpired term was of little importance. Fortunately, he noticed he would soon be paying way over the odds for a lease extension. Toby was able to extend his lease just under the wire in August. Toby and the freeholder in the end agreed on a premium of £5,500 . If the lease had gone below eighty years, the price would have gone up by a minimum £1,075.
Mr F Kelly completed a newly refurbished flat in Finedon in March 1995. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative residencies in Finedon with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced annually. The lease lapsed in 2083. Having 57 years outstanding we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
Mr P Gómez was assigned a lease of a studio apartment in Finedon in February 2012. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative flats in Finedon with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced annually. The lease elapsed in 2094. Given that there were 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.