Frogmore leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Frogmore will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Frogmore 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Frogmore leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Alexander, came critically close to the 80-year threshold with the lease on his first floor flat in Frogmore. In buying his home 19 years ago, the lease term was of no concern. Luckily, he became aware that he needed to take steps soon on a lease extension. Alexander extended the lease just ahead of time last April. Alexander and the freeholder ultimately settled on the final figure of £5,500 . If he had missed the deadline, the amount would have become more costly by at least £875.
Dr Cameron Cook acquired a ground floor apartment in Frogmore in February 1998. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Frogmore with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease expired in 2104. Given that there were 78 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.
Ms Olivia Wood took over the lease of a garden apartment in Frogmore in April 2007. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar flats in Frogmore with an extended lease were worth £191,000. The average ground rent payable was £65 invoiced monthly. The lease termination date was in 2084. Given that there were 58 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including costs.