As the length of the unexpired term of a Flint residential lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Flint will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Flint with in excess of 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you enhanced control over the value of your Flint leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold owner of a 2 bedroom apartment in Flint being sold with a lease of fraction over 72 years left. Jacob on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2011 we were e-mailed by Dr U Sharif who, having purchased a one bedroom flat in Flint in May 2010. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Identical flats in Flint with an extended lease were in the region of £285,000. The average ground rent payable was £55 collected every twelve months. The lease ran out on 24 February 2104. Given that there were 79 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.
Mr and Mrs. U Wright purchased a one bedroom flat in Flint in August 2011. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Similar premises in Flint with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 collected yearly. The lease lapsed in 2084. Having 59 years left we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including professional charges.