With a residential leasehold property in Frodsham, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years remaining. Leasehold owners in Frodsham with a lease approaching 81 years unexpired should seriously think of extending it without delay. When a lease has below eighty years outstanding, under the current Act the freeholder is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Frodsham can be a difficult process. We recommend you get guidance 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 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.
14 months ago Nathaniel, came precariously near to the eighty-year mark with the lease on his leasehold apartment in Frodsham. In buying his property two decades ago, the length of the lease was of little significance. Fortunately, he noticed he needed to take action soon on Extending the lease. Nathaniel was able to extend his lease just under the wire last May. Nathaniel and the freeholder via the managing agents eventually settled on a premium of £6,000 . If the lease had dipped lower than eighty years, the figure would have escalated by at least £1,150.
Last Winter we were called by Dr C Gómez , who moved into a basement flat in Frodsham in June 2011. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Comparative premises in Frodsham with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out on 25 April 2097. Given that there were 72 years unexpired we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including professional charges.
Mr and Mrs. E Díaz bought a basement flat in Frodsham in February 2001. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Frodsham with 100 year plus lease were in the region of £233,200. The average ground rent payable was £60 invoiced monthly. The lease ended in 2086. Given that there were 61 years unexpired we calculated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including professional charges.