The market value of a leasehold property in Frinton On Sea depends on how long the lease has left to run. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be addressed prior to the eighty year cut off point. Current legislation enables Frinton On Sea qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of 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 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure Frinton On Sea 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.
Off the back of lengthy correspondence with the freeholder of her ground floor flat in Frinton On Sea, Katherine commenced the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction was concluded in March 2008. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. R Moreau was assigned a lease of a recently refurbished apartment in Frinton On Sea in March 1997. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Frinton On Sea with an extended lease were worth £210,000. The average ground rent payable was £50 billed yearly. The lease ended on 6 August 2105. Given that there were 80 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Mr and Mrs. I Nelson moved into a basement flat in Frinton On Sea in November 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Frinton On Sea with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced annually. The lease ended in 2094. Having 69 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.