It’s a harsh truth that a Frizington residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Frizington property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Frizington will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not qualify. 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 throughout the process.
Leasehold properties in Frizington with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Virgin | |
| Yorkshire Building Society |
Retaining our service gives you increased 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Joshua owned a high value apartment in Frizington being marketed with a lease of just over 59 years unexpired. Joshua informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joshua to invoke his statutory right. Joshua procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last July we were phoned by Mr L Reed , who was assigned a lease of a studio apartment in Frizington in September 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Frizington with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease elapsed in 2096. Having 70 years outstanding we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Last Winter we were contacted by Mr and Mrs. G Rose , who bought a basement apartment in Frizington in January 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical properties in Frizington with 100 year plus lease were in the region of £223,400. The average ground rent payable was £60 collected yearly. The lease concluded in 2085. Having 59 years unexpired we calculated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of professional charges.