Frizington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Frizington residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Frizington you really ought to check if your lease has between 70 and 90 years left. There are compelling reasons why a Frizington leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Frizington,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Frizington valuers.
Last Autumn Logan, came critically close to the 80-year threshold with the lease on his garden flat in Frizington. In buying his property 18 years previously, the unexpired term was of no concern. Fortunately, he realised he needed to take steps soon on Extending the lease. Logan extended the lease just in the nick of time last March. Logan and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £1,075.
In 2010 we were approached by Mr O Rivera who, having took over the lease of a basement flat in Frizington in January 1995. The question was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical premises in Frizington with an extended lease were valued around £250,400. The average amount of ground rent was £65 invoiced every twelve months. The lease ran out in 2089. Given that there were 64 years left we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 not including professional charges.
Last Autumn we were approach by Mr and Mrs. B Garcia , who was assigned a lease of a first floor apartment in Frizington in May 1998. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparable residencies in Frizington with 100 year plus lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease came to a finish on 4 March 2078. Having 53 years unexpired we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.