Frogmore leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Frogmore residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Frogmore you must see if your lease has between seventy and ninety years left. There are compelling reasons why a Frogmore leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay
Leasehold premises in Frogmore with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
| 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. |
Lease extensions in Frogmore can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 procuring Frogmore lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the freeholder of her leasehold apartment in Frogmore, Lily started the lease extension process as the eighty year mark was fast approaching. The lease extension was finalised in May 2010. The landlord’s charges were restricted to less than 500 pounds.
Mr and Mrs. F López owned a ground floor apartment in Frogmore in February 2012. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar premises in Frogmore with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 collected every twelve months. The lease lapsed in 2082. Given that there were 57 years remaining we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus fees.
In 2013 we were e-mailed by Dr Ryan Martinez who, having completed a newly refurbished flat in Frogmore in July 2006. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Frogmore with 100 year plus lease were valued around £245,000. The average amount of ground rent was £45 invoiced yearly. The lease concluded on 17 November 2093. Taking into account 68 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.