Chances are that if you own a flat in Flackwell Heath you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Flackwell Heath lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Luca, came critically close to the 80-year threshold with the lease on his two bedroom flat in Flackwell Heath. In buying his property two decades ago, the unexpired term was of minimal concern. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Luca arranged for a lease extension just under the wire last January. Luca and the freeholder via the managing agents subsequently settled on the final figure of £5,000 . If he not met the deadline, the price would have increased by at least £1,100.
Last Spring we were called by Mr and Mrs. J Vincent , who owned a one bedroom apartment in Flackwell Heath in June 2011. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparable properties in Flackwell Heath with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease elapsed in 2097. Considering the 72 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including expenses.
In 2010 we were called by Mr and Mrs. A White who, having purchased a studio apartment in Flackwell Heath in September 1999. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar premises in Flackwell Heath with 100 year plus lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2086. Taking into account 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 plus expenses.