With a residential leasehold property in Flackwell Heath, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Leasehold owners in Flackwell Heath with a lease approaching 81 years remaining should seriously think of extending it sooner than later. Once a lease has under 80 years outstanding, under the relevant Act the landlord is entitled to calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Flackwell Heath,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Flackwell Heath valuers.
14 months ago Reuben, started to get close to the 80-year mark with the lease on his basement apartment in Flackwell Heath. In buying his home two decades ago, the length of the lease was of minimal bearing. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. Reuben was able to extend his lease just ahead of time in July. Reuben and the freeholder via the managing agents subsequently agreed on sum of £6,000 . If he had missed the deadline, the amount would have gone up by at least £950.
Last Winter we were called by Mr Reuben Cooper , who completed a studio apartment in Flackwell Heath in November 2007. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical properties in Flackwell Heath with 100 year plus lease were worth £300,000. The average ground rent payable was £50 collected yearly. The lease expired on 19 February 2101. Considering the 76 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.
In 2009 we were contacted by Mrs Georgina Moreau who, having completed a one bedroom flat in Flackwell Heath in November 2004. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Flackwell Heath with a long lease were worth £257,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease expired on 28 September 2090. Taking into account 65 years unexpired we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.