With a long leasehold property in Flackwell Heath, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Leasehold owners in Flackwell Heath with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has less than eighty years outstanding, under the current Act the freeholder is entitled to calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Flackwell Heath can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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.
Jude was the the leasehold owner of a studio apartment in Flackwell Heath on the market with a lease of a little over 72 years remaining. Jude informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jude to invoke his statutory right. Jude procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Mr and Mrs. S Brown bought a ground floor flat in Flackwell Heath in August 2000. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Flackwell Heath with an extended lease were worth £191,400. The mid-range ground rent payable was £55 billed every twelve months. The lease finished in 2080. Taking into account 54 years unexpired we calculated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 plus professional charges.
Last Christmas we were contacted by Dr T Roberts , who completed a purpose-built apartment in Flackwell Heath in May 2003. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable premises in Flackwell Heath with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 collected per annum. The lease elapsed on 11 February 2100. Given that there were 74 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.