The value of Frome leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is below than 80 years
Leasehold properties in Frome with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Frome leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful negotiations with the freeholder of her studio apartment in Frome, Aimee initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction was finalised in July 2008. The landlord’s fees were kept to an absolute minimum.
In 2012 we were e-mailed by Dr Harriet Stewart who, having owned a basement apartment in Frome in August 2006. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar flats in Frome with an extended lease were valued around £189,000. The mid-range amount of ground rent was £55 collected yearly. The lease lapsed on 20 January 2078. Considering the 53 years unexpired we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.
Last month we were phoned by Ms Catherine Simon , who purchased a garden flat in Frome in April 2008. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparable homes in Frome with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease elapsed on 3 August 2098. Given that there were 73 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.