Flitwick leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Flitwick will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Flitwick with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service gives you better control over the value of your Flitwick leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Daniel, started to get near to the 80-year mark with the lease on his purpose- built apartment in Flitwick. In buying his property 19 years previously, the length of the lease was of minimal relevance. Fortunately, he realised he would soon be paying an escalated premium for a lease extension. Daniel arranged for a lease extension just in the nick of time in August. Daniel and the freeholder via the management company eventually agreed on an amount of £5,500 . If he had missed the deadline, the price would have become more costly by a minimum £1,150.
In 2014 we were phoned by Mr and Mrs. C Jones who, having completed a one bedroom apartment in Flitwick in May 2006. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Identical premises in Flitwick with a long lease were worth £267,600. The average amount of ground rent was £65 billed every twelve months. The lease concluded in 2093. Considering the 67 years left we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of professional charges.
Last year we were e-mailed by Dr George Morgan , who purchased a basement apartment in Flitwick in April 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Flitwick with an extended lease were valued around £206,200. The average ground rent payable was £60 billed yearly. The lease ran out on 19 January 2082. Taking into account 56 years as a residual term we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of expenses.