There is no doubt about it a leasehold flat or house in Frinton On Sea is a wasting asset as a result of the shortening lease. If the lease has, more than 125 years remaining then this decrease may be negligible however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Frinton On Sea will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as 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 are not acceptable. 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; |
| Halifax | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Frinton On Sea,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Frinton On Sea valuers.
Owen owned a conversion apartment in Frinton On Sea being sold with a lease of a few days over 59 years left. Owen informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
In 2013 we were called by Mr I Simon who, having bought a ground floor apartment in Frinton On Sea in October 1995. The question was if we could approximate the premium could be for a 90 year lease extension. Comparative premises in Frinton On Sea with a long lease were in the region of £216,000. The average ground rent payable was £60 invoiced quarterly. The lease finished in 2084. Considering the 58 years left we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.
Last Summer we were contacted by Mr and Mrs. K Hernández , who owned a purpose-built apartment in Frinton On Sea in June 2000. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical homes in Frinton On Sea with 100 year plus lease were valued around £205,000. The average ground rent payable was £50 collected per annum. The lease elapsed on 14 November 2104. Having 78 years outstanding we estimated the premium to the landlord for the lease extension to be between £7,600 and £8,800 exclusive of expenses.