When it comes to long leasehold property in Frodsham, you are actually buying an entitlement to reside in a property for a set period of time. Modern 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 consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Leasehold owners in Frodsham with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has under 80 years remaining, under the relevant statute the freeholder can calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same 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 |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 |
| 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 freeholder in Frodsham,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 Frodsham valuers.
Isaac owned a 2 bedroom flat in Frodsham being marketed with a lease of just over fifty eight years unexpired. Isaac on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2011 we were e-mailed by Mr and Mrs. G Roux who, having acquired a one bedroom apartment in Frodsham in November 2000. The question was if we could approximate the premium would be for a 90 year lease extension. Similar premises in Frodsham with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £50 billed yearly. The lease came to a finish in 2099. Having 75 years remaining we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
In 2011 we were e-mailed by Mrs Alisha Nguyen who, having acquired a garden apartment in Frodsham in August 1997. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparable homes in Frodsham with 100 year plus lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease ended on 14 October 2088. Taking into account 64 years unexpired we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including professional charges.