The value of Flint leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is below than eighty years
Leasehold properties in Flint with in excess of 100 years left 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The lawyers that we work with procure Flint 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.
After unsuccessful discussions with the freeholder of her leasehold flat in Flint, Daisy commenced the lease extension process as the 80 year mark was fast nearing. The transaction was finalised in August 2009. The landlord’s costs were kept to an absolute minimum.
In 2012 we were contacted by Dr Connor Gómez who, having completed a recently refurbished apartment in Flint in March 2004. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative premises in Flint with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 collected yearly. The lease finished on 3 August 2102. Given that there were 77 years remaining we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
Dr S Carter took over the lease of a newly refurbished flat in Flint in July 1998. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable homes in Flint with an extended lease were worth £183,600. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed on 14 February 2082. Taking into account 57 years left we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus expenses.