Frinton and Walton leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Frinton and Walton will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Frinton and Walton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jack owned a high value apartment in Frinton and Walton being marketed with a lease of a few days over 61 years left. Jack informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jack to invoke his statutory right. Jack procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2014 we were called by Mr and Mrs. P García who, having moved into a ground floor apartment in Frinton and Walton in April 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical flats in Frinton and Walton with an extended lease were valued about £227,800. The average amount of ground rent was £45 billed monthly. The lease ended in 2090. Considering the 65 years remaining we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.
In 2012 we were contacted by Dr Kirsty Vincent who, having took over the lease of a ground floor apartment in Frinton and Walton in May 2010. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable premises in Frinton and Walton with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease expiry date was in 2101. Taking into account 76 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.