The nearer a domestic lease in Frant gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 100 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. Most flat owners in Frant will meet the qualifying criteria; however a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancers 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.
Last October Gabriel, came critically close to the eighty-year mark with the lease on his basement flat in Frant. In buying his property two decades ago, the unexpired term was of little significance. Thankfully, he recognised he needed to take action soon on Extending the lease. Gabriel was able to extend his lease just under the wire last January. Gabriel and the freeholder via the management company in the end agreed on an amount of £5,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,050.
Last year we were contacted by Mr and Mrs. F Moore , who purchased a basement apartment in Frant in June 1998. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative residencies in Frant with a long lease were valued around £218,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease concluded on 4 February 2089. Considering the 63 years left we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of legals.
Mr and Mrs. N Torres purchased a studio flat in Frant in March 2010. The question was if we could approximate the premium would be for a ninety year lease extension. Identical flats in Frant with a long lease were valued about £270,000. The average ground rent payable was £55 billed yearly. The lease finished on 15 May 2100. Taking into account 74 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.