Frinton On Sea leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Frinton On Sea residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Frinton On Sea you really ought to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Frinton On Sea with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
The lawyers 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.
Two years ago Luke, came very near to the 80-year threshold with the lease on his one bedroom apartment in Frinton On Sea. Having bought his property 18 years ago, the lease term was of minimal importance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Luke arranged for a lease extension just in the nick of time last June. Luke and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had slid below eighty years, the amount would have increased by at least £1,050.
Last November we were approach by Mr and Mrs. W Kelly , who moved into a one bedroom flat in Frinton On Sea in September 1999. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable flats in Frinton On Sea with an extended lease were worth £257,800. The average ground rent payable was £65 billed quarterly. The lease ran out in 2090. Having 65 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of expenses.
Last month we were called by Mr and Mrs. P André , who owned a first floor flat in Frinton On Sea in August 2004. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable residencies in Frinton On Sea with a long lease were worth £191,400. The mid-range amount of ground rent was £55 collected per annum. The lease terminated on 4 January 2079. Given that there were 54 years left we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including fees.