Frinton On Sea leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Frinton On Sea will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some cases you may not qualify. There are also strict deadlines and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Frinton On Sea,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 Frinton On Sea valuers.
Last October Eli, started to get close to the 80-year mark with the lease on his leasehold flat in Frinton On Sea. In buying his property 19 years ago, the lease term was of little significance. by good luck, he recognised he needed to take action soon on Extending the lease. Eli was able to extend his lease just ahead of time last March. Eli and the landlord in the end agreed on sum of £5,500 . If the lease had slipped below 80 years, the amount would have gone up by a minimum £1,000.
Last month we were phoned by Mr Rory Pérez , who moved into a purpose-built flat in Frinton On Sea in January 2004. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical homes in Frinton On Sea with a long lease were valued around £189,000. The average ground rent payable was £55 invoiced yearly. The lease concluded in 2078. Given that there were 53 years unexpired we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of expenses.
Last Summer we were phoned by Mr and Mrs. B Stewart , who took over the lease of a first floor flat in Frinton On Sea in February 2006. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative flats in Frinton On Sea with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease came to a finish on 23 October 2098. Considering the 73 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.