The re-sale value of a leasehold property in Flitwick depends on how long the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that all matters can be concluded in advance of the eighty year mark. Current legislation enables Flitwick qualifying lessees to an additional term of ninety years on top of the remaining term, at a peppercorn rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Flitwick with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| TSB | |
| The Mortgage Works |
Lease extensions in Flitwick can be a difficult process. We recommend you get guidance from a conveyancer 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.
Jude owned a studio flat in Flitwick being sold with a lease of a few days over fifty eight years unexpired. Jude on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jude to exercise his statutory right. Jude procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2014 we were contacted by Mr and Mrs. P Lambert who, having owned a first floor flat in Flitwick in May 2010. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Identical premises in Flitwick with 100 year plus lease were valued about £206,200. The mid-range amount of ground rent was £60 collected quarterly. The lease lapsed on 1 November 2082. Taking into account 56 years unexpired we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.
In 2013 we were phoned by Dr Ethan Clark who, having purchased a newly refurbished flat in Flitwick in June 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar premises in Flitwick with an extended lease were in the region of £300,000. The average ground rent payable was £50 billed yearly. The lease elapsed on 26 April 2102. Taking into account 76 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.