On the balance of probabilities where you own a flat in Flint you actually own a long leasehold interest over your property
Leasehold properties in Flint with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with procure 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.
Following lengthy negotiations with the freeholder of her one bedroom apartment in Flint, Megan commenced the lease extension process as the eighty year deadline was swiftly advancing. The lease extension was concluded in September 2012. The freeholder’s fees were restricted to less than 700 GBP.
Last year we were called by Mr R Adams , who owned a basement flat in Flint in August 2010. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Flint with a long lease were worth £275,000. The average amount of ground rent was £55 invoiced annually. The lease expired in 2102. Having 76 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last Spring we were e-mailed by Mr Ethan Peterson , who completed a studio apartment in Flint in August 2009. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable flats in Flint with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease came to a finish on 22 November 2082. Having 56 years remaining we calculated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of fees.