Why you should commence your Frimley lease extension

Why you should start your Frimley lease extension today:

A Frimley leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Frimley depends on how long the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded ahead of the 80 year cut off point. Leasehold Reform legislation enables Frimley qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

Frimley property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not finance a property with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Frimley lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with handle Frimley 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.

Frimley Lease Extension Example Cases:

Luke, Frimley, Surrey

In 2014 Luke, started to get near to the 80-year mark with the lease on his garden flat in Frimley. In buying his home two decades ago, the length of the lease was of minimal importance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Luke extended the lease just under the wire in September. Luke and the freeholder ultimately settled on the final figure of £5,500 . If the lease had fallen below eighty years, the premium would have gone up by at least £875.

Frimley case:

Mr and Mrs. C Howard bought a garden apartment in Frimley in July 2005. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparative flats in Frimley with a long lease were worth £200,000. The mid-range ground rent payable was £50 billed yearly. The lease finished in 2103. Taking into account 77 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.

Frimley case:

In 2014 we were contacted by Mrs M Petit who, having took over the lease of a one bedroom flat in Frimley in February 2009. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Frimley with an extended lease were valued about £265,200. The average amount of ground rent was £65 collected monthly. The lease came to a finish in 2092. Having 66 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus legals.