Frinton On Sea leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Frinton On Sea enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Frinton On Sea you should see if your lease has between 70 and ninety years remaining. There are good reasons why a Frinton On Sea leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Frinton On Sea with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
In recent months Theo, started to get near to the eighty-year mark with the lease on his garden flat in Frinton On Sea. Having bought his property twenty years ago, the lease term was of no bearing. by good luck, he realised he needed to take steps soon on a lease extension. Theo arranged for a lease extension just under the wire last April. Theo and the landlord subsequently agreed on the final figure of £6,000 . If he not met the deadline, the amount would have escalated by at least £975.
Last Autumn we were approach by Dr G Green , who acquired a garden apartment in Frinton On Sea in April 2004. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable residencies in Frinton On Sea with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ended in 2082. Given that there were 56 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus professional charges.
Last November we were contacted by Mr W Girard , who purchased a studio flat in Frinton On Sea in May 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Similar premises in Frinton On Sea with a long lease were worth £300,000. The mid-range ground rent payable was £50 invoiced annually. The lease lapsed on 2 November 2102. Having 76 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.