As the the remaining lease term of a Frizington residential lease diminished so does its value and therefore the value of your property. If the lease has, more than one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Frizington will meet the qualifying criteria; however a conveyancing solicitor will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Frizington with more than 100 years outstanding 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Frizington can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 procuring Frizington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Tyler, started to get near to the eighty-year threshold with the lease on his first floor flat in Frizington. Having bought his flat twenty years ago, the unexpired term was of little significance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Tyler was able to extend his lease just ahead of time in September. Tyler and the landlord who owned the flat above in the end agreed on the final figure of £5,500 . If he had missed the deadline, the sum would have increased by a minimum £850.
In 2012 we were called by Mr Y Adams who, having acquired a one bedroom apartment in Frizington in July 2003. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable homes in Frizington with a long lease were worth £206,200. The mid-range amount of ground rent was £60 collected yearly. The lease ran out in 2081. Taking into account 56 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.
Ms N Mason was assigned a lease of a purpose-built apartment in Frizington in August 2005. The dilemma was if we could estimate the price could be for a ninety year lease extension. Similar properties in Frizington with an extended lease were valued about £300,000. The average ground rent payable was £50 invoiced annually. The lease ended on 11 May 2101. Considering the 76 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.