Flint leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Flint will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 conveyancing solicitors that we work with undertake 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.
Ibrahim was the the leasehold proprietor of a high value apartment in Flint being marketed with a lease of just over fifty eight years left. Ibrahim informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr and Mrs. V Hernández bought a ground floor flat in Flint in September 2007. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar properties in Flint with an extended lease were valued around £237,600. The average ground rent payable was £45 billed every twelve months. The lease elapsed on 1 March 2093. Taking into account 67 years left we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.
Last Summer we were called by Mr and Mrs. R Baker , who purchased a basement flat in Flint in September 2010. The question was if we could estimate the premium would be for a ninety year lease extension. Similar flats in Flint with a long lease were in the region of £280,000. The average ground rent payable was £55 invoiced monthly. The lease ran out in 2104. Given that there were 78 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.