Top reasons for Frome lease extension

Why you should start your Frome lease extension today:

Increase your lease and increase your Frome property value

Frome leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Frome enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Frome you must check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may decide not to loan monies with a short lease

Mortgage lenders have set criteria when lending funds secured on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term drops lower than a certain unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than seventy years as acceptable security. In addition to this being important when selling, it is also relevant where you are wanting to remortgage your Frome property.

Get in touch with one of our Frome lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with undertake Frome 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.

Frome Lease Extension Case Studies:

Chantelle, Frome, Somerset,

Trailing lengthy discussions with the freeholder of her leasehold flat in Frome, Chantelle initiated the lease extension process as the eighty year threshold was quickly nearing. The lease extension was concluded in July 2006. The landlord’s charges were negotiated to below 600 pounds.

Frome case:

Mr Eliot Garcia was assigned a lease of a one bedroom apartment in Frome in September 2010. The question was if we could approximate the premium would be to prolong the lease by ninety years. Identical homes in Frome with a long lease were worth £198,800. The average ground rent payable was £55 billed every twelve months. The lease terminated in 2081. Considering the 55 years unexpired we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of legals.

Frome case:

Last Summer we were approach by Mrs Shannon Rogers , who purchased a basement flat in Frome in March 2003. The question was if we could estimate the premium could be for a 90 year lease extension. Comparable flats in Frome with a long lease were worth £300,000. The average ground rent payable was £50 invoiced monthly. The lease termination date was on 4 April 2101. Having 75 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.