Flitwick leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Flitwick tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Flitwick you would be well advised to check if your lease has between seventy and ninety years left. There are compelling reasons why a Flitwick leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a landlord in Flitwick,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Flitwick valuers.
John owned a studio apartment in Flitwick being marketed with a lease of a little over 59 years outstanding. John on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were John to invoke his statutory right. John obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr and Mrs. O Turner owned a ground floor apartment in Flitwick in February 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Identical flats in Flitwick with 100 year plus lease were valued around £174,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease elapsed in 2075. Considering the 51 years unexpired we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.
In 2014 we were approached by Mr and Mrs. O Sánchez who, having moved into a ground floor apartment in Flitwick in June 2006. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Flitwick with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease concluded on 16 March 2095. Having 71 years left we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.