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 gets more expensive. Legislation has been in place for sometime now which entitles qualifying Finningley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Finningley you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Finningley with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Finningley 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 Finningley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eliot owned a conversion apartment in Finningley being marketed with a lease of fraction over sixty years unexpired. Eliot informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Eliot to invoke his statutory right. Eliot procured expert advice and secured satisfactory resolution informally and readily saleable.
Last year we were contacted by Mr Max Petit , who bought a basement apartment in Finningley in November 2010. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar premises in Finningley with a long lease were in the region of £233,200. The average ground rent payable was £60 billed yearly. The lease concluded on 5 January 2086. Considering the 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including costs.
Mr and Mrs. N Mitchell bought a purpose-built flat in Finningley in October 2012. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable residencies in Finningley with an extended lease were valued about £171,800. The mid-range ground rent payable was £55 invoiced annually. The lease finished on 16 September 2075. Considering the 50 years remaining we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus fees.