When it comes to long leasehold property in Frodsham, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years remaining. Anyone in Frodsham with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When the lease term has below eighty years left, under the relevant Act the landlord can calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 Frodsham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Frodsham valuers.
Oliver owned a 2 bedroom apartment in Frodsham on the market with a lease of fraction over 61 years unexpired. Oliver informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert advice and secured satisfactory deal informally and readily saleable.
In 2012 we were approached by Dr Rachael Clarke who, having owned a purpose-built apartment in Frodsham in March 1997. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Identical homes in Frodsham with 100 year plus lease were in the region of £174,200. The average ground rent payable was £55 billed annually. The lease concluded on 19 June 2076. Considering the 51 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.
Last Autumn we were called by Mr L Davies , who bought a first floor flat in Frodsham in February 2004. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in Frodsham with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 collected yearly. The lease concluded on 23 October 2096. Considering the 71 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.