The closer a residential lease in Frogmore nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 125 years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Frogmore will qualify for this right; however a conveyancer should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancers that we work with procure Frogmore 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 conveyancer we work with provide it.
After unsuccessful negotiations with the freeholder of her leasehold apartment in Frogmore, Molly started the lease extension process just as her lease was nearing the critical eighty-year mark. The legal work completed in September 2005. The landlord’s costs were kept to an absolute minimum.
Last year we were phoned by Mr U Díaz , who owned a ground floor apartment in Frogmore in August 2004. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical homes in Frogmore with an extended lease were in the region of £265,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ran out in 2099. Taking into account 73 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2013 we were approached by Mr and Mrs. M Edwards who, having bought a garden apartment in Frogmore in March 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar residencies in Frogmore with an extended lease were valued around £264,000. The average amount of ground rent was £60 billed per annum. The lease concluded on 16 October 2079. Considering the 53 years unexpired we estimated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus expenses.