The market value of Frizington 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 escalate materialy once the unexpired lease term is less than 80 years
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
Engaging our service gives you better control over the value of your Frizington leasehold, as your property will be more valuable and marketable in relation to the 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.
During the course of the last few months Finn, came precariously close to the 80-year threshold with the lease on his ground floor apartment in Frizington. Having purchased his home twenty years previously, the length of the lease was of minimal importance. Fortunately, he became aware that he would soon be paying way over the odds for Extending the lease. Finn arranged for a lease extension just ahead of time last March. Finn and the freeholder ultimately agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £1,075.
Last month we were called by Mr and Mrs. G Sánchez , who moved into a garden apartment in Frizington in August 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar homes in Frizington with a long lease were worth £189,000. The average ground rent payable was £55 collected annually. The lease came to a finish in 2079. Taking into account 53 years left we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of legals.
In 2013 we were e-mailed by Mr B Roberts who, having was assigned a lease of a studio flat in Frizington in July 2006. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Frizington with an extended lease were in the region of £290,000. The average ground rent payable was £45 invoiced yearly. The lease elapsed on 6 May 2099. Given that there were 73 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.