The market value of Flackwell Heath leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than 80 years
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises 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 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancers that we work with handle Flackwell Heath 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 conveyancing solicitor we work with provide it.
In recent months Hunter, came critically near to the 80-year mark with the lease on his leasehold apartment in Flackwell Heath. In buying his property 18 years previously, the length of the lease was of no concern. Thankfully, he realised he would soon be paying an escalated premium for a lease extension. Hunter arranged for a lease extension just under the wire last June. Hunter and the freeholder via the managing agents in the end settled on sum of £6,000 . If he had missed the deadline, the price would have increased by at least £1,125.
Mr and Mrs. E Richardson took over the lease of a studio apartment in Flackwell Heath in February 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Flackwell Heath with a long lease were worth £240,600. The average amount of ground rent was £60 billed quarterly. The lease expiry date was on 1 May 2088. Having 62 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus legals.
Dr I Harris bought a purpose-built flat in Flackwell Heath in November 1996. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative properties in Flackwell Heath with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 collected quarterly. The lease came to a finish in 2077. Given that there were 51 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.