Frant leases on residential deteriorating in value. Where your lease has about 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Frant will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Frant 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 lawyer we work with provide it.
Jack was the the leasehold owner of a conversion flat in Frant being sold with a lease of a few days over 61 years outstanding. Jack on an informal basis spoke with his freeholder being 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 on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jack to invoke his statutory right. Jack procured expert advice and secured an acceptable resolution informally and sell the property.
In 2009 we were contacted by Dr Arthur Baker who, having owned a basement apartment in Frant in June 2003. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Similar flats in Frant with 100 year plus lease were in the region of £261,600. The average ground rent payable was £60 billed quarterly. The lease finished in 2078. Considering the 52 years unexpired we estimated the premium to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of legals.
In 2009 we were called by Dr N Edwards who, having moved into a ground floor flat in Frant in August 2001. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Frant with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 billed annually. The lease ran out on 19 November 2089. Having 63 years remaining we estimated the premium to the landlord for the lease extension to be between £17,100 and £19,800 not including costs.