Frinton and Walton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Frinton and Walton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Frinton and Walton you should check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Frinton and Walton can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
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 dealing with Frinton and Walton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Jasper, came perilously close to the 80-year mark with the lease on his ground floor apartment in Frinton and Walton. In buying his home two decades ago, the length of the lease was of little concern. Thankfully, he realised he would soon be paying an escalated premium for a lease extension. Jasper was able to extend his lease just under the wire last June. Jasper and the freeholder via the management company ultimately agreed on an amount of £5,000 . If the lease had slid lower than 80 years, the price would have become more exhorbitant by at least £1,025.
Mr and Mrs. W Petit bought a basement apartment in Frinton and Walton in September 2012. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar residencies in Frinton and Walton with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced annually. The lease elapsed in 2078. Taking into account 53 years left we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including legals.
In 2014 we were contacted by Ms O Flores who, having took over the lease of a ground floor apartment in Frinton and Walton in September 2012. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar premises in Frinton and Walton with a long lease were in the region of £220,400. The average amount of ground rent was £45 billed per annum. The lease end date was in 2089. Taking into account 64 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus fees.