The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Frizington have the right to extend the lease for an additional 90 years under legislation. Please give careful consideration before delaying your Frizington lease extension. Putting off the costs today simply escalates the amount you will eventually be required to pay for a lease extension.
Leasehold properties in Frizington with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Frizington,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Frizington valuers.
Off the back of lengthy discussions with the freeholder of her one bedroom flat in Frizington, Eleanor commenced the lease extension process as the eighty year deadline was fast nearing. The transaction completed in October 2014. The landlord’s fees were restricted to about 500 GBP.
Last Christmas we were called by Dr Ellen Murphy , who bought a garden flat in Frizington in January 2002. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical flats in Frizington with an extended lease were valued around £174,200. The average ground rent payable was £55 collected monthly. The lease ran out on 6 September 2077. Given that there were 51 years unexpired we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus expenses.
Last year we were approach by Mr and Mrs. A Martin , who owned a one bedroom flat in Frizington in September 1996. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Identical premises in Frizington with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed on 27 January 2097. Having 71 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.