On the balance of probabilities if you own a flat in Flint you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 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 lawyer we work with provide it.
Jamie was the the leasehold owner of a studio flat in Flint on the market with a lease of just over sixty years remaining. Jamie informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jamie to invoke his statutory right. Jamie procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2009 we were approached by Dr E Martínez who, having took over the lease of a studio flat in Flint in April 2009. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Flint with an extended lease were worth £210,600. The average ground rent payable was £45 invoiced annually. The lease came to a finish on 22 April 2088. Taking into account 62 years as a residual term we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.
Last Winter we were called by Ms Ellie James , who bought a one bedroom apartment in Flint in August 1998. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparable residencies in Flint with an extended lease were worth £260,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish on 26 March 2099. Considering the 73 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.