There is no doubt about it a leasehold flat or house in Frizington is a wasting asset as a result of the shortening lease. Where the lease has, over 125 years to run then this decrease may be fractional however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. The majority of flat owners in Frizington will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Frizington with more than one hundred 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Frizington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Frizington valuers.
Subsequent to lengthy discussions with the freeholder of her basement flat in Frizington, Alicia started the lease extension process as the eighty year deadline was fast coming. The transaction completed in March 2009. The landlord’s charges were negotiated to slightly above four hundred pounds.
Last Winter we were phoned by Mr and Mrs. G Howard , who owned a studio apartment in Frizington in September 2005. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Frizington with a long lease were valued around £198,800. The mid-range ground rent payable was £55 collected per annum. The lease ended in 2079. Taking into account 55 years outstanding we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including expenses.
Last July we were called by Mr and Mrs. G Murphy , who was assigned a lease of a studio apartment in Frizington in May 1996. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Identical premises in Frizington with 100 year plus lease were valued around £300,000. The average amount of ground rent was £50 collected quarterly. The lease ran out on 27 March 2099. Given that there were 75 years remaining we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.