Frogmore leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term dips under 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 extra value that a lease extension will add to the property. Leasehold owners in Frogmore will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Frogmore with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Frogmore can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 a wealth of experience dealing with Frogmore lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Blake owned a high value apartment in Frogmore on the market with a lease of a few days over sixty years left. Blake on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Ms O Alexander owned a studio apartment in Frogmore in August 2003. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Frogmore with a long lease were worth £220,400. The average ground rent payable was £45 invoiced quarterly. The lease concluded on 26 January 2089. Having 64 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 not including professional charges.
In 2009 we were contacted by Mr and Mrs. M Peterson who, having took over the lease of a first floor apartment in Frogmore in October 2010. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable premises in Frogmore with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 invoiced monthly. The lease expiry date was on 11 July 2099. Considering the 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.