Flamborough leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Flamborough residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Flamborough you should check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Flamborough can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 procuring Flamborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of lengthy negotiations with the landlord of her leasehold apartment in Flamborough, Alisha started the lease extension process just as the lease was approaching the all-important 80-year threshold. The legal work was concluded in May 2015. The freeholder’s costs were negotiated to below 550 GBP.
Mr Omar Nelson bought a ground floor apartment in Flamborough in June 2009. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparable flats in Flamborough with an extended lease were in the region of £285,000. The average ground rent payable was £45 billed every twelve months. The lease expired on 24 February 2098. Taking into account 72 years remaining we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
Last August we were phoned by Mr and Mrs. T Bennett , who completed a studio flat in Flamborough in October 2010. We are asked if we could estimate the price would be to extend the lease by an additional years. Identical properties in Flamborough with a long lease were valued around £233,200. The average amount of ground rent was £60 billed quarterly. The lease expired in 2087. Taking into account 61 years outstanding we estimated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 plus legals.