Flint residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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 conveyancing solicitor we work with provide it.
Matthew was the the leasehold proprietor of a high value apartment in Flint on the market with a lease of fraction over sixty years outstanding. Matthew on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Matthew to invoke his statutory right. Matthew procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Dr A Moore bought a one bedroom flat in Flint in February 2008. The question was if we could estimate the price would be to extend the lease by a further 90 years. Identical properties in Flint with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 collected monthly. The lease came to a finish in 2089. Considering the 63 years left we calculated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 not including costs.
Mr B Phillips purchased a first floor apartment in Flint in June 2005. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparative flats in Flint with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 collected every twelve months. The lease concluded in 2100. Considering the 74 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.