With a long leasehold property in Frinton On Sea, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Residents in Frinton On Sea with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. When a lease has under 80 years outstanding, under the current Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Frinton On Sea with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you increased control over the value of your Frinton On Sea 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kyle was the the leasehold owner of a 2 bedroom apartment in Frinton On Sea being marketed with a lease of a few days over 72 years remaining. Kyle informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2014 we were approached by Mr and Mrs. C Vincent who, having bought a ground floor flat in Frinton On Sea in August 2000. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Similar flats in Frinton On Sea with an extended lease were valued about £191,400. The mid-range ground rent payable was £55 collected quarterly. The lease ended in 2080. Considering the 54 years left we calculated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of expenses.
Mr and Mrs. O Rose was assigned a lease of a one bedroom flat in Frinton On Sea in January 2012. The question was if we could estimate the price could be for a ninety year lease extension. Similar homes in Frinton On Sea with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out in 2100. Given that there were 74 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.