The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Flitwick may extend the lease for a further ninety years under Leasehold Reform legislation. Do think carefully before delaying your Flitwick lease extension. Shelving that expense today simply increases the amount you will ultimately be required to pay to extend the lease.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Flitwick lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Leon, started to get close to the eighty-year mark with the lease on his leasehold flat in Flitwick. Having bought his home two decades ago, the length of the lease was of little bearing. by good luck, he realised he would soon be paying way over the odds for Extending the lease. Leon was able to extend his lease just in the nick of time in August. Leon and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If the lease had dropped to less than 80 years, the sum would have gone up by a minimum £1,150.
Mr and Mrs. C Campbell moved into a recently refurbished flat in Flitwick in January 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Flitwick with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 billed monthly. The lease ended on 25 April 2104. Taking into account 78 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
Mr and Mrs. K Laurent owned a first floor flat in Flitwick in June 2004. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar premises in Flitwick with 100 year plus lease were valued around £267,600. The average amount of ground rent was £65 collected every twelve months. The lease elapsed on 1 September 2093. Having 67 years as a residual term we approximated the premium to the landlord for the lease extension to be within £14,300 and £16,400 plus costs.