Frizington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes 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 must see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Frizington leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the landlord of her leasehold apartment in Frizington, Ellen initiated the lease extension process as the 80 year deadline was fast coming. The legal work was concluded in September 2010. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were approach by Mr and Mrs. C Ricardo , who acquired a one bedroom apartment in Frizington in January 1997. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparative residencies in Frizington with an extended lease were in the region of £280,000. The average amount of ground rent was £45 collected annually. The lease expiry date was on 19 February 2095. Having 69 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
Last Christmas we were e-mailed by Mr and Mrs. D González , who acquired a ground floor apartment in Frizington in April 2010. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical residencies in Frizington with 100 year plus lease were valued around £216,000. The average amount of ground rent was £60 invoiced yearly. The lease ran out on 26 October 2084. Given that there were 58 years outstanding we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.