Unfortunately that a Frodsham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Frodsham property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term falls below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Frodsham will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Frodsham with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Frodsham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Frodsham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Mason owned a 2 bedroom apartment in Frodsham on the market with a lease of fraction over fifty eight years remaining. Mason on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Mason to exercise his statutory right. Mason obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Mr and Mrs. J Pérez owned a purpose-built flat in Frodsham in June 2007. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative residencies in Frodsham with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 invoiced per annum. The lease concluded in 2092. Given that there were 67 years as a residual term we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of costs.
Ms O Bernard owned a one bedroom apartment in Frodsham in June 2007. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Frodsham with a long lease were valued around £206,200. The average amount of ground rent was £60 invoiced yearly. The lease lapsed on 10 February 2081. Given that there were 56 years remaining we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.