The value of Flackwell Heath leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is below than eighty years
It is conventional wisdom 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 all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Flackwell Heath,the lease extension lawyers 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 Flackwell Heath valuers.
Alex owned a 2 bedroom flat in Flackwell Heath being marketed with a lease of fraction over fifty eight years outstanding. Alex informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Alex to exercise his statutory right. Alex procured expert advice and secured satisfactory deal without going to tribunal and sell the flat.
Dr F Harris bought a purpose-built apartment in Flackwell Heath in October 1996. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical residencies in Flackwell Heath with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease elapsed in 2105. Having 79 years unexpired we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
In 2013 we were e-mailed by Mr and Mrs. C Thompson who, having took over the lease of a basement apartment in Flackwell Heath in April 2006. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative homes in Flackwell Heath with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 collected yearly. The lease expired on 12 January 2094. Considering the 68 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.