Frinton On Sea leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Leasehold owners in Frinton On Sea will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Frinton On Sea,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Frinton On Sea valuers.
Alex owned a high value flat in Frinton On Sea being sold with a lease of just over 59 years outstanding. Alex informally spoke with his freeholder a well known Manchester-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 new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alex to exercise his statutory right. Alex obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Ms U Gray moved into a first floor apartment in Frinton On Sea in November 2005. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Similar properties in Frinton On Sea with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 invoiced yearly. The lease expiry date was in 2104. Considering the 79 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Ms D Williams purchased a basement apartment in Frinton On Sea in January 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Frinton On Sea with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out in 2093. Given that there were 68 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.