Flitwick leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Flitwick enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Flitwick you really ought to check if your lease has between seventy and ninety years remaining. There are good reasons why a Flitwick leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Engaging our service will provide you enhanced control over the value of your Flitwick leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Theo, came precariously close to the 80-year threshold with the lease on his studio flat in Flitwick. In buying his flat two decades ago, the unexpired term was of no bearing. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Theo arranged for a lease extension just under the wire last June. Theo and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If the lease had dropped to less than eighty years, the amount would have become more costly by at least £850.
In 2009 we were e-mailed by Mr and Mrs. P Bailey who, having bought a garden apartment in Flitwick in November 1995. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical homes in Flitwick with a long lease were valued around £223,400. The mid-range ground rent payable was £60 collected annually. The lease end date was in 2085. Considering the 59 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of expenses.
In 2013 we were e-mailed by Mr Sam Laurent who, having completed a studio apartment in Flitwick in August 2002. 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. Comparable flats in Flitwick with an extended lease were worth £205,000. The average ground rent payable was £50 collected quarterly. The lease terminated in 2105. Taking into account 79 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.