It’s an underpublicised certainty that a Frizington residential lease is a wasting 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 depreciation 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 slips under 80 years - otherwise a higher amount will be due. The majority of flat owners in Frizington will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Frizington,the lease extension lawyers 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.
After protracted correspondence with the landlord of her ground floor apartment in Frizington, Millie commenced the lease extension process as the eighty year threshold was rapidly advancing. The legal work was finalised in May 2006. The freeholder’s charges were restricted to approximately 700 pounds.
Last Spring we were phoned by Mr and Mrs. B Adams , who moved into a purpose-built flat in Frizington in September 2006. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical homes in Frizington with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease ended in 2077. Given that there were 52 years left we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including professional charges.
Last Autumn we were approach by Mr Toby Lefèvre , who acquired a one bedroom flat in Frizington in July 2000. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Similar flats in Frizington with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 billed yearly. The lease elapsed in 2097. Having 72 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus expenses.