Unfortunately that a Frizington residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Frizington property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in Frizington will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Engaging our service will provide you increased control over the value of your Frizington leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Charlie, came seriously near to the 80-year threshold with the lease on his two bedroom flat in Frizington. In buying his flat two decades ago, the lease term was of no relevance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Charlie extended the lease just under the wire in June. Charlie and the landlord in the end settled on the final figure of £5,500 . If the lease had gone to less than 80 years, the sum would have increased by at least £950.
Last Christmas we were e-mailed by Mr and Mrs. D Watson , who took over the lease of a ground floor apartment in Frizington in March 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Frizington with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 invoiced yearly. The lease finished on 26 January 2104. Given that there were 78 years unexpired we estimated the premium to the landlord to extend the lease to be between £7,600 and £8,800 not including legals.
Last Christmas we were e-mailed by Ms Ellen Ward , who owned a one bedroom apartment in Frizington in July 2009. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Identical residencies in Frizington with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced per annum. The lease elapsed on 17 October 2093. Considering the 67 years unexpired we estimated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of costs.