When it comes to residential leasehold property in Flint, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than 80 years left. Leasehold owners in Flint with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has under 80 years remaining, under the relevant Act the landlord can calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Flint with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 justify 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Flint,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Flint valuers.
Half a year ago Joseph, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Flint. Having bought his home twenty years ago, the lease term was of little relevance. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Joseph extended the lease at the eleventh hour in April. Joseph and the freeholder subsequently settled on sum of £6,000 . If the lease had fallen lower than 80 years, the premium would have gone up by at least £1,125.
Dr R Peterson took over the lease of a ground floor flat in Flint in August 1995. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative flats in Flint with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed on 13 May 2105. Considering the 80 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
In 2013 we were phoned by Mrs I Vincent who, having took over the lease of a basement flat in Flint in June 1997. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable residencies in Flint with 100 year plus lease were valued about £200,800. The average ground rent payable was £65 collected every twelve months. The lease terminated in 2085. Given that there were 60 years left we approximated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 not including fees.