It’s a harsh certainty that a Frodsham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Frodsham property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Frodsham will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same 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 many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| 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. |
Lease extensions in Frodsham can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Frodsham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Max, started to get near to the 80-year mark with the lease on his one bedroom apartment in Frodsham. Having purchased his property two decades ago, the length of the lease was of little significance. by good luck, he realised he needed to take steps soon on Extending the lease. Max extended the lease just ahead of time last August. Max and the landlord eventually agreed on a premium of £5,000 . If the lease had slid lower than eighty years, the premium would have increased by at least £925.
Mr and Mrs. N Nelson purchased a ground floor apartment in Frodsham in May 2003. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative flats in Frodsham with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 collected monthly. The lease terminated in 2091. Considering the 65 years as a residual term we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus legals.
Dr S Vincent moved into a ground floor flat in Frodsham in July 1997. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical homes in Frodsham with a long lease were valued about £191,400. The average ground rent payable was £55 billed annually. The lease finished in 2080. Considering the 54 years remaining we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of professional charges.