It’s a harsh truth that a Flitwick 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 first few years due to the loss of value being disguised by increases in the Flitwick property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. Most leasehold owners in Flitwick will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Lease extensions in Flitwick can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Flitwick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Dexter, came dangerously close to the 80-year mark with the lease on his studio apartment in Flitwick. Having purchased his flat two decades ago, the lease term was of no interest. Thankfully, he became aware that he would imminently be paying an escalated premium for Extending the lease. Dexter arranged for a lease extension at the eleventh hour last January. Dexter and the landlord subsequently settled on a premium of £5,500 . If he had missed the deadline, the premium would have gone up by at least £850.
Mr and Mrs. H Bennett took over the lease of a recently refurbished flat in Flitwick in November 2004. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar flats in Flitwick with an extended lease were valued about £191,400. The average amount of ground rent was £55 collected monthly. The lease terminated in 2079. Having 54 years unexpired we approximated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of expenses.
Mr and Mrs. S Michel was assigned a lease of a first floor flat in Flitwick in February 2008. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparable premises in Flitwick with an extended lease were worth £295,000. The average ground rent payable was £45 collected per annum. The lease termination date was on 9 May 2099. Having 74 years left we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.