Frome leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Flat owners in Frome will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Frome can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
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 dealing with Frome lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Nathan, came precariously close to the 80-year threshold with the lease on his ground floor flat in Frome. Having purchased his property two decades ago, the unexpired term was of minimal relevance. Luckily, he recognised he would imminently be paying an inflated amount for a lease extension. Nathan arranged for a lease extension just ahead of time in June. Nathan and the freeholder via the management company ultimately settled on a premium of £5,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £850.
Last Spring we were contacted by Mrs Naomi Taylor , who acquired a ground floor apartment in Frome in July 1996. The question was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Frome with an extended lease were in the region of £205,000. The average amount of ground rent was £50 invoiced monthly. The lease finished on 27 October 2105. Considering the 79 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
Last month we were phoned by Mrs Elizabeth Gray , who purchased a purpose-built flat in Frome in February 1999. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical flats in Frome with a long lease were valued about £275,000. The mid-range ground rent payable was £65 billed per annum. The lease concluded on 11 April 2094. Given that there were 68 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.