Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Flackwell Heath. Inevitably, the period of lease left reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Qualifying leaseholders in Flackwell Heath have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give due attention before delaying your Flackwell Heath lease extension. Holding off that expense now simply increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Lease extensions in Flackwell Heath can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge dealing with Flackwell Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aarav owned a 2 bedroom flat in Flackwell Heath on the market with a lease of fraction over 72 years outstanding. Aarav on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Ms Holly Lewis completed a newly refurbished flat in Flackwell Heath in January 2010. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Similar properties in Flackwell Heath with a long lease were in the region of £280,000. The average ground rent payable was £45 billed quarterly. The lease ended in 2094. Having 69 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
Mr O Michel was assigned a lease of a newly refurbished apartment in Flackwell Heath in January 2000. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar homes in Flackwell Heath with a long lease were in the region of £216,000. The average ground rent payable was £60 invoiced monthly. The lease ended on 28 August 2083. Having 58 years remaining we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.