Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Flackwell Heath. Inevitably, the period of lease left reduces over time. This may pass by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Flackwell Heath have the right to extend the lease for an additional ninety years in accordance with legislation. Please give careful consideration before putting off your Flackwell Heath lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you increased control over the value of your Flackwell Heath leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Evan was the the leasehold proprietor of a high value flat in Flackwell Heath on the market with a lease of just over 72 years outstanding. Evan informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Evan to invoke his statutory right. Evan procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2014 we were phoned by Mr and Mrs. E Peterson who, having purchased a studio apartment in Flackwell Heath in November 2000. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparable flats in Flackwell Heath with 100 year plus lease were valued about £250,400. The mid-range amount of ground rent was £65 invoiced annually. The lease ran out in 2088. Considering the 64 years remaining we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of legals.
Mr W White moved into a one bedroom apartment in Flackwell Heath in February 2003. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Identical properties in Flackwell Heath with a long lease were valued around £189,000. The average ground rent payable was £55 invoiced annually. The lease expiry date was on 9 January 2077. Having 53 years outstanding we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.