Frodsham leases on domestic deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Frodsham will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Frodsham 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.
Jake owned a 2 bedroom apartment in Frodsham on the market with a lease of just over 72 years unexpired. Jake on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jake to invoke his statutory right. Jake procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last October we were contacted by Ms Ellie Bonnet , who owned a one bedroom flat in Frodsham in June 1996. The question was if we could estimate the price could be for a 90 year extension to my lease. Comparable flats in Frodsham with an extended lease were worth £205,000. The mid-range ground rent payable was £50 collected quarterly. The lease elapsed in 2104. Given that there were 79 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
Mr Matthew Williams bought a first floor flat in Frodsham in July 2005. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical properties in Frodsham with a long lease were in the region of £275,000. The average amount of ground rent was £65 billed monthly. The lease ran out on 24 April 2093. Given that there were 68 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.