When it comes to long leasehold premises in Frampton Cotterell, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Anyone in Frampton Cotterell with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has below 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety 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 |
|---|---|
| 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 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you better control over the value of your Frampton Cotterell leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold proprietor of a conversion apartment in Frampton Cotterell on the market with a lease of a little over 61 years unexpired. Jacob on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Jacob to invoke his statutory right. Jacob procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
Last Spring we were approach by Mr and Mrs. C Wood , who took over the lease of a ground floor apartment in Frampton Cotterell in July 1999. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative residencies in Frampton Cotterell with a long lease were valued about £184,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished on 11 July 2078. Having 53 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus expenses.
In 2009 we were approached by Mrs Rachel Evans who, having took over the lease of a first floor apartment in Frampton Cotterell in May 2002. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Frampton Cotterell with an extended lease were worth £290,000. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish on 24 April 2098. Having 73 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.