Flackwell Heath leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Flackwell Heath residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Flackwell Heath you should check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Flackwell Heath can be a difficult process. We recommend you get professional help from a lawyer and valuer 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 in-depth market knowledge dealing with Flackwell Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the freeholder of her first floor apartment in Flackwell Heath, Rachel commenced the lease extension process as the 80 year deadline was fast advancing. The legal work was finalised in August 2008. The landlord’s costs were kept to an absolute minimum.
Dr I Harris bought a studio apartment in Flackwell Heath in September 2002. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Similar flats in Flackwell Heath with an extended lease were worth £208,600. The average ground rent payable was £60 invoiced per annum. The lease end date was in 2082. Given that there were 57 years left we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of costs.
Last Winter we were called by Ms Y García , who acquired a garden flat in Flackwell Heath in February 2002. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar homes in Flackwell Heath with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ended on 23 February 2102. Considering the 77 years unexpired we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.