There is no doubt about it a leasehold flat or house in Frinton On Sea is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Frinton On Sea will qualify for this right; however a conveyancer will be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord 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.
18 months ago Tommy, came perilously near to the 80-year mark with the lease on his two bedroom apartment in Frinton On Sea. Having bought his home two decades ago, the lease term was of little concern. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Tommy arranged for a lease extension at the eleventh hour last January. Tommy and the freeholder via the managing agents in the end settled on the final figure of £6,000 . If he had missed the deadline, the price would have gone up by a minimum £850.
In 2009 we were approached by Mr and Mrs. V Hall who, having purchased a recently refurbished flat in Frinton On Sea in March 1996. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Identical properties in Frinton On Sea with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out in 2093. Given that there were 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
In 2012 we were approached by Ms Courtney Jones who, having purchased a one bedroom flat in Frinton On Sea in March 2006. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable residencies in Frinton On Sea with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 collected quarterly. The lease ran out on 14 March 2082. Given that there were 58 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.