When it comes to long leasehold premises in Frodsham, you are in fact renting it for a certain period of time. Modern 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 should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Leasehold owners in Frodsham with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years remaining, under the relevant Act the landlord can calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Frodsham with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Frodsham can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
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 dealing with 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 2014 Muhammad, started to get close to the 80-year mark with the lease on his ground floor flat in Frodsham. Having bought his property 18 years previously, the lease term was of minimal concern. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Muhammad extended the lease just ahead of time last September. Muhammad and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If the lease had dipped to less than 80 years, the figure would have become more costly by at least £875.
Mr and Mrs. Y Hall completed a ground floor flat in Frodsham in October 2008. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar flats in Frodsham with an extended lease were worth £225,800. The average amount of ground rent was £60 collected per annum. The lease elapsed in 2085. Considering the 60 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 plus legals.
Mr Harry Laurent moved into a ground floor flat in Frodsham in March 2003. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar flats in Frodsham with a long lease were in the region of £210,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 12 May 2105. Taking into account 80 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.