As the length of the unexpired term of a Frogmore domestic lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years remaining 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; nevertheless a conveyancer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Frogmore can be a difficult process. We recommend you secure professional help from a lawyer 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 in-depth market knowledge 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.
Tommy was the the leasehold owner of a high value apartment in Frogmore being sold with a lease of a little over 59 years outstanding. Tommy informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last Summer we were e-mailed by Mrs Hannah Miller , who completed a studio flat in Frogmore in July 2010. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar premises in Frogmore with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease elapsed on 6 May 2096. Given that there were 70 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Last year we were e-mailed by Dr V Dupont , who bought a purpose-built flat in Frogmore in January 1997. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Identical premises in Frogmore with an extended lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced annually. The lease expired in 2076. Taking into account 50 years unexpired we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 plus costs.