It’s an underpublicised truth that a Finedon residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Finedon property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining slips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Finedon will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland |
The lawyers that we work with handle Finedon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jake owned a 2 bedroom apartment in Finedon being sold with a lease of just over 59 years left. Jake informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Jake to invoke his statutory right. Jake procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Dr Teddy Bennett moved into a studio flat in Finedon in February 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Finedon with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 invoiced quarterly. The lease elapsed on 14 June 2090. Considering the 64 years remaining we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of professional charges.
Last month we were contacted by Mr Noah Ricardo , who bought a first floor apartment in Finedon in July 1998. We are asked if we could approximate the price could be for a 90 year lease extension. Identical homes in Finedon with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed in 2101. Taking into account 75 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.