Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Finningley. Clearly, the term of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Finningley have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Finningley lease extension. Holding off the cost now only increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Lease extensions in Finningley can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Finningley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Michael, came precariously near to the 80-year threshold with the lease on his basement flat in Finningley. Having purchased his flat two decades ago, the lease term was of minimal interest. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Michael arranged for a lease extension just under the wire in July. Michael and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had gone lower than eighty years, the sum would have gone up by at least £1,025.
Mr and Mrs. H Khan bought a one bedroom flat in Finningley in January 2001. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical residencies in Finningley with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 billed yearly. The lease expired on 24 August 2104. Considering the 78 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
In 2014 we were called by Ms Jade Girard who, having purchased a newly refurbished flat in Finningley in April 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Finningley with a long lease were in the region of £267,600. The average ground rent payable was £65 invoiced per annum. The lease lapsed on 18 May 2093. Having 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 plus professional charges.