The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Flint can extend the lease for an additional ninety years under Leasehold Reform legislation. Please think carefully before delaying your Flint lease extension. Putting off the costs now simply increases the price you will eventually have to pay to extend the lease.
Leasehold residencies in Flint with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
The lawyers that we work with handle Flint 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 conveyancer we work with provide it.
Henry was the the leasehold owner of a studio apartment in Flint being marketed with a lease of fraction over fifty eight years left. Henry on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2014 we were e-mailed by Mrs Lucy Girard who, having purchased a purpose-built flat in Flint in April 2003. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparable properties in Flint with a long lease were worth £235,200. The average ground rent payable was £45 invoiced yearly. The lease concluded on 3 August 2092. Having 66 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Ms E Adams took over the lease of a garden flat in Flint in June 2004. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Flint with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expired in 2103. Having 77 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.