With a long leasehold premises in Frinton On Sea, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear 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 becomes disproportionately greater especially when there are fewer than eighty years left. Anyone in Frinton On Sea with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has fewer than 80 years remaining, under the relevant statute the landlord is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Frinton On Sea with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Frinton On Sea 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.
Off the back of protracted correspondence with the landlord of her leasehold apartment in Frinton On Sea, Hannah commenced the lease extension process as the eighty year threshold was quickly coming. The lease extension completed in November 2007. The freeholder’s fees were restricted to approximately five hundred pounds.
Mr and Mrs. P Díaz took over the lease of a newly refurbished apartment in Frinton On Sea in April 2010. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Identical homes in Frinton On Sea with a long lease were valued about £248,000. The mid-range amount of ground rent was £65 collected per annum. The lease finished on 11 October 2088. Having 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus costs.
In 2010 we were contacted by Mr E Phillips who, having completed a garden flat in Frinton On Sea in January 2009. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Similar homes in Frinton On Sea with a long lease were valued about £181,600. The average amount of ground rent was £55 invoiced per annum. The lease ran out in 2077. Given that there were 52 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus costs.