Finningley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Finningley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Finningley you really ought to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Finningley with in excess of one hundred years outstanding on the lease are often referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Finningley,the lease extension solicitors that we work with will always be willing 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.
In 2014 Seth, came dangerously close to the eighty-year threshold with the lease on his purpose- built apartment in Finningley. Having purchased his flat 19 years ago, the lease term was of minimal concern. Fortunately, he noticed he would soon be paying an escalated premium for Extending the lease. Seth extended the lease just under the wire in August. Seth and the freeholder eventually settled on a premium of £6,000 . If the lease had slipped below 80 years, the sum would have gone up by at least £1,150.
Last July we were e-mailed by Dr Sarah Dupont , who acquired a one bedroom apartment in Finningley in February 2009. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative properties in Finningley with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 invoiced yearly. The lease ran out in 2092. Considering the 66 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including legals.
In 2011 we were called by Dr C Norbert who, having purchased a recently refurbished apartment in Finningley in July 2006. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparable properties in Finningley with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 invoiced annually. The lease elapsed in 2081. Having 55 years remaining we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.