The market 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 materialy once the remaining term is less than 80 years
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Flint leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Max owned a 2 bedroom flat in Flint being sold with a lease of a little over fifty eight years remaining. Max informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max procured expert advice and secured an acceptable resolution informally and sell the property.
Last Autumn we were approach by Dr Mia Lefebvre , who bought a purpose-built flat in Flint in November 2001. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Similar homes in Flint with a long lease were in the region of £220,400. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish on 23 January 2090. Considering the 64 years left we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of legals.
Last Autumn we were called by Mr T Davies , who completed a basement apartment in Flint in July 2011. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative homes in Flint with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease terminated on 17 November 2101. Having 75 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.