The market value of a leasehold property in Flamborough is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed ahead of the 80 year mark. Leasehold Reform legislation entitles Flamborough qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Flamborough with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Flamborough,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Flamborough valuers.
Muhammad owned a high value flat in Flamborough on the market with a lease of a few days over 59 years remaining. Muhammad informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last month we were called by Dr Finn Pérez , who bought a first floor apartment in Flamborough in March 2012. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Flamborough with an extended lease were worth £198,800. The mid-range ground rent payable was £55 billed yearly. The lease lapsed on 4 March 2080. Considering the 55 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including costs.
In 2010 we were contacted by Mr and Mrs. P Collins who, having bought a one bedroom flat in Flamborough in November 2000. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar flats in Flamborough with a long lease were worth £295,000. The mid-range ground rent payable was £45 invoiced monthly. The lease terminated in 2100. Taking into account 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.