The only way is down when it comes to Frinton On Sea lease terms. Frinton On Sea properties that have a residual term shorter than 80 years will reduce in value even faster, and the cost of extending your lease will rise.
Leasehold properties in Frinton On Sea with more than one hundred 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Engaging our service will provide you better control over the value of your Frinton On Sea leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Elijah was the the leasehold proprietor of a conversion flat in Frinton On Sea being sold with a lease of a few days over 72 years remaining. Elijah informally contacted 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 £125 annually. No ground rent would be payable on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2011 we were called by Mr and Mrs. D Simon who, having owned a first floor flat in Frinton On Sea in January 2002. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable flats in Frinton On Sea with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 billed yearly. The lease terminated on 17 August 2076. Having 52 years left we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
In 2014 we were contacted by Mr Jackson Michel who, having purchased a recently refurbished apartment in Frinton On Sea in May 1996. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparative residencies in Frinton On Sea with a long lease were worth £290,000. The average amount of ground rent was £45 invoiced per annum. The lease ran out in 2096. Taking into account 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including fees.