Flitwick Lease Extension - Free Consultation

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Top reasons for Flitwick lease extension


Main reasons to commence your Flitwick lease extension today:

A Flitwick lease depreciates with the years remaining on the lease.

Unfortunately that a Flitwick residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Flitwick property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term drops below 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 leasehold owners in Flitwick will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations 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 lawyer throughout the formalities.

An extended lease is almost the same value as a freehold

Leasehold premises in Flitwick with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders will not lend on a short lease

Banks and building societies are really restricting their approach as regards to homes in Flitwick with short leases. For instance you may find that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your only options would be to find a cash buyer, or hope for the best at auction thus restricting the number of prospective purchasers.

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.
Godiva Mortgages A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Halifax Minimum 70 years from the date of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.

What makes us experts in Flitwick lease extensions?

Using our service will provide you increased control over the value of your Flitwick leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Flitwick Lease Extension Example Cases:

Nathaniel, Flitwick, Bedfordshire,

Nathaniel was the the leasehold owner of a conversion flat in Flitwick being marketed with a lease of a little over 59 years outstanding. Nathaniel on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.

Flitwick case:

Dr C Clarke completed a garden flat in Flitwick in October 2007. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar properties in Flitwick with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease expired in 2096. Taking into account 72 years outstanding we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.

Flitwick case:

Dr Reuben Moreau completed a one bedroom flat in Flitwick in November 2001. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical premises in Flitwick with an extended lease were valued around £233,200. The mid-range amount of ground rent was £60 collected quarterly. The lease came to a finish in 2085. Having 61 years unexpired we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of legals.