When it comes to long leasehold property in Flint, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are less than eighty years left. Leasehold owners in Flint with a lease approaching 81 years left should seriously consider extending it as soon as possible. When a lease has below eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with undertake 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.
Last October Evan, started to get near to the eighty-year mark with the lease on his two bedroom flat in Flint. Having bought his home two decades ago, the length of the lease was of no bearing. by good luck, he became aware that he needed to take steps soon on Extending the lease. Evan arranged for a lease extension just under the wire in June. Evan and the freeholder via the managing agents in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the price would have escalated by at least £1,000.
Ms Lydia Mercier bought a studio flat in Flint in March 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable homes in Flint with an extended lease were worth £255,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish in 2097. Having 71 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
In 2013 we were phoned by Ms Rebecca Wood who, having took over the lease of a basement apartment in Flint in April 1998. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Identical homes in Flint with an extended lease were valued about £254,200. The average ground rent payable was £60 collected yearly. The lease lapsed on 23 January 2077. Given that there were 51 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including legals.