Felixstowe leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. Flat owners in Felixstowe will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Felixstowe with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Felixstowe can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Felixstowe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Finley, came seriously near to the eighty-year mark with the lease on his leasehold apartment in Felixstowe. In buying his property 18 years ago, the length of the lease was of minimal bearing. Fortunately, he became aware that he needed to take action soon on Extending the lease. Finley arranged for a lease extension just ahead of time last June. Finley and the freeholder eventually agreed on an amount of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £925.
In 2010 we were called by Mr and Mrs. S Thompson who, having took over the lease of a garden flat in Felixstowe in September 2006. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Felixstowe with an extended lease were worth £290,000. The mid-range ground rent payable was £45 collected monthly. The lease lapsed in 2099. Taking into account 74 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
Last Summer we were called by Dr Harvey Kelly , who acquired a newly refurbished flat in Felixstowe in March 1996. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Felixstowe with 100 year plus lease were worth £243,000. The average ground rent payable was £65 collected per annum. The lease lapsed in 2088. Considering the 63 years left we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of costs.