With a residential leasehold property in Flamborough, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years remaining. Anyone in Flamborough with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years remaining, under the current statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Flamborough can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 Flamborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Freddie owned a studio apartment in Flamborough being marketed with a lease of just over 72 years outstanding. Freddie informally contacted his freeholder a well known Bristol-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 new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last Christmas we were approach by Mr Alfie Richardson , who moved into a one bedroom apartment in Flamborough in January 1996. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Similar residencies in Flamborough with an extended lease were valued about £280,000. The average ground rent payable was £45 collected monthly. The lease elapsed on 5 July 2095. Taking into account 70 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
In 2012 we were phoned by Dr S Mitchell who, having moved into a garden apartment in Flamborough in July 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Identical properties in Flamborough with 100 year plus lease were worth £218,400. The mid-range ground rent payable was £60 billed quarterly. The lease concluded in 2084. Given that there were 59 years remaining we estimated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus costs.