On the balance of probabilities if you own a flat in Flint you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| 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. |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
Freddie owned a high value flat in Flint being sold with a lease of a few days over 61 years remaining. Freddie informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last month we were approach by Mr V Peterson , who took over the lease of a basement apartment in Flint in August 2003. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable premises in Flint with 100 year plus lease were valued around £193,400. The average ground rent payable was £65 invoiced annually. The lease terminated on 14 July 2084. Taking into account 59 years outstanding we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of costs.
Dr G Gunderson completed a garden flat in Flint in July 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Flint with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expiry date was on 14 February 2095. Considering the 70 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.