When it comes to residential leasehold property in Flitwick, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Flitwick with a lease nearing 81 years left should seriously think of extending it as soon as possible. When the lease term has below 80 years remaining, under the relevant legislation the freeholder can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
Retaining our service gives you better control over the value of your Flitwick leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Archie was the the leasehold owner of a conversion apartment in Flitwick being marketed with a lease of just over 72 years outstanding. Archie informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Archie to exercise his statutory right. Archie procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
In 2010 we were called by Mr D Alexander who, having was assigned a lease of a recently refurbished flat in Flitwick in June 2011. We are asked if we could estimate the price would be for a ninety year lease extension. Identical premises in Flitwick with an extended lease were in the region of £189,000. The mid-range ground rent payable was £55 billed every twelve months. The lease ended on 1 March 2078. Having 53 years left we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.
Mr R Simon completed a one bedroom apartment in Flitwick in April 2001. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparable flats in Flitwick with a long lease were in the region of £290,000. The average ground rent payable was £45 invoiced quarterly. The lease ran out on 13 November 2098. Given that there were 73 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.