It’s an underpublicised certainty that a Flitwick residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Flitwick property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Flitwick will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander | |
| TSB | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Flitwick,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Flitwick valuers.
During the course of the last few months Luca, started to get near to the eighty-year mark with the lease on his garden apartment in Flitwick. In buying his property 19 years previously, the lease term was of no relevance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Luca was able to extend his lease just in the nick of time in January. Luca and the freeholder subsequently agreed on a premium of £5,000 . If he failed to meet the deadline, the premium would have escalated by at least £875.
Mr M Morel acquired a studio apartment in Flitwick in January 2007. The question was if we could approximate the price could be for a 90 year lease extension. Comparable homes in Flitwick with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 billed per annum. The lease expiry date was on 25 January 2101. Considering the 75 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
Mr and Mrs. G Roberts acquired a ground floor apartment in Flitwick in August 2005. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative residencies in Flitwick with a long lease were valued about £250,400. The mid-range amount of ground rent was £65 billed per annum. The lease ran out in 2090. Taking into account 64 years as a residual term we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including professional charges.