With a residential leasehold premises in Felixstowe, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years left. Residents in Felixstowe with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has less than eighty years left, under the relevant statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Felixstowe,the lease extension experts 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 Felixstowe valuers.
Last Summer Henry, came precariously near to the eighty-year mark with the lease on his purpose- built flat in Felixstowe. Having bought his property 19 years previously, the length of the lease was of no concern. As luck would have it, he realised he needed to take action soon on Extending the lease. Henry arranged for a lease extension just under the wire in January. Henry and the freeholder subsequently agreed on an amount of £5,000 . If the lease had slipped below 80 years, the sum would have gone up by a minimum £1,025.
Dr Matthew Anderson moved into a one bedroom flat in Felixstowe in May 2009. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparative residencies in Felixstowe with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease ended in 2098. Having 72 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
In 2010 we were called by Dr Joshua Bennett who, having took over the lease of a ground floor flat in Felixstowe in May 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Felixstowe with a long lease were in the region of £233,200. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out in 2087. Having 61 years unexpired we calculated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of professional charges.