Unfortunately that a Flint residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Flint property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Flint will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Flint with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Nationwide Building Society | |
| Santander | |
| TSB | |
| Royal Bank of Scotland |
The lawyers 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.
Leon was the the leasehold owner of a 2 bedroom flat in Flint on the market with a lease of a few days over fifty eight years remaining. Leon on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leon to invoke his statutory right. Leon procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last month we were contacted by Mr and Mrs. V Morel , who bought a one bedroom apartment in Flint in February 2003. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Flint with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 billed annually. The lease expiry date was on 1 August 2104. Taking into account 78 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.
Last Autumn we were approach by Mrs Caitlin Rodríguez , who owned a recently refurbished flat in Flint in August 2002. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative homes in Flint with a long lease were valued about £186,000. The average amount of ground rent was £65 billed yearly. The lease ended on 12 June 2084. Having 58 years left we approximated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of legals.