It’s an underpublicised certainty that a Finningley residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Finningley property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Finningley will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Finningley with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Santander |
Irrespective of whether you are a tenant or a freeholder in Finningley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Finningley valuers.
After lengthy discussions with the landlord of her two bedroom apartment in Finningley, Eleanor started the lease extension process just as her lease was approaching the all-important 80-year deadline. The transaction completed in January 2013. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were phoned by Mr E André , who acquired a one bedroom flat in Finningley in May 2012. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Finningley with an extended lease were worth £223,400. The average amount of ground rent was £60 collected per annum. The lease ended in 2085. Taking into account 59 years remaining we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 plus expenses.
Last July we were contacted by Ms T Bernard , who took over the lease of a ground floor flat in Finningley in September 2002. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar flats in Finningley with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease elapsed on 20 September 2105. Given that there were 79 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.