When it comes to residential leasehold property in Flitwick, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years left. Residents in Flitwick with a lease drawing near to 81 years left should seriously think of extending it without delay. When the lease term has below 80 years outstanding, under the current legislation the freeholder is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred 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 property will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Flitwick can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Off the back of lengthy correspondence with the landlord of her purpose-built flat in Flitwick, Robyn started the lease extension process just as the lease was coming close to the critical 80-year mark. The lease extension was finalised in January 2007. The landlord’s costs were restricted to below 550 GBP.
In 2010 we were phoned by Dr S Alexander who, having moved into a one bedroom flat in Flitwick in September 2001. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical homes in Flitwick with a long lease were valued around £206,200. The average ground rent payable was £55 invoiced quarterly. The lease expired on 5 July 2081. Having 56 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.
Mr and Mrs. C Mitchell was assigned a lease of a garden flat in Flitwick in October 2000. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar properties in Flitwick with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 collected per annum. The lease finished in 2101. Taking into account 76 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.