When it comes to residential leasehold premises in Frizington, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years left. Leasehold owners in Frizington with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has fewer than 80 years left, under the relevant legislation the landlord can calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Frizington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Aaron was the the leasehold proprietor of a studio flat in Frizington on the market with a lease of a little over 72 years outstanding. Aaron on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aaron to invoke his statutory right. Aaron procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
Last Spring we were contacted by Mrs L Ramírez , who took over the lease of a purpose-built apartment in Frizington in November 1998. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparative premises in Frizington with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease end date was in 2104. Given that there were 79 years left we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.
Mrs Leah Murphy acquired a one bedroom apartment in Frizington in June 2012. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative premises in Frizington with an extended lease were in the region of £275,000. The average amount of ground rent was £65 billed monthly. The lease finished in 2093. Having 68 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.