When it comes to long leasehold property in Frizington, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Anyone in Frizington with a lease nearing 81 years left should seriously think of extending it as soon as possible. When a lease has below eighty years remaining, under the current legislation the freeholder is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Frizington with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
Two years ago Aiden, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Frizington. In buying his property two decades ago, the length of the lease was of little concern. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Aiden was able to extend his lease just in the nick of time last January. Aiden and the freeholder via the management company ultimately agreed on an amount of £5,500 . If the lease had dipped below eighty years, the figure would have increased by at least £875.
Last Winter we were phoned by Mr and Mrs. D Rodríguez , who bought a recently refurbished flat in Frizington in July 2005. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical homes in Frizington with a long lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2085. Having 61 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including professional charges.
In 2013 we were called by Mr and Mrs. P Rodríguez who, having moved into a basement apartment in Frizington in February 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Frizington with a long lease were worth £171,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out on 2 July 2074. Considering the 50 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus professional charges.