Finningley leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Leasehold owners in Finningley will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with undertake Finningley 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.
Matthew was the the leasehold proprietor of a conversion flat in Finningley being marketed with a lease of a little over fifty eight years unexpired. Matthew on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Mr and Mrs. B Simon was assigned a lease of a basement apartment in Finningley in May 2009. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar residencies in Finningley with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £65 collected annually. The lease ran out in 2093. Having 68 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.
In 2013 we were contacted by Ms E García who, having bought a studio flat in Finningley in April 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Similar properties in Finningley with an extended lease were valued around £208,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease expiry date was in 2082. Given that there were 57 years as a residual term we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.