With a long leasehold premises in Flint Mountain, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Anyone in Flint Mountain with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. When the lease term has below 80 years left, under the current legislation the landlord is entitled to calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Flint Mountain with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Flint Mountain,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Flint Mountain valuers.
Eliot was the the leasehold proprietor of a conversion apartment in Flint Mountain on the market with a lease of a little over 59 years left. Eliot informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Eliot to invoke his statutory right. Eliot procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Ms W Martin bought a newly refurbished flat in Flint Mountain in March 2012. The question was if we could estimate the price would be to prolong the lease by 90 years. Identical homes in Flint Mountain with 100 year plus lease were worth £166,800. The average ground rent payable was £50 billed per annum. The lease lapsed in 2075. Considering the 50 years unexpired we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of expenses.
Mrs G Wright moved into a newly refurbished flat in Flint Mountain in October 2009. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable premises in Flint Mountain with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 billed per annum. The lease termination date was in 2095. Taking into account 70 years remaining we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.