The only way is down when it comes to Frampton on Severn lease terms. Frampton on Severn flats that have a lease term fewer than 80 years will de-escalate in market price even faster, and the cost to extend your lease will rise.
Leasehold premises in Frampton on Severn with in excess of 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Frampton on Severn,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Frampton on Severn valuers.
Last October Cameron, came dangerously near to the 80-year threshold with the lease on his two bedroom flat in Frampton on Severn. Having bought his home 19 years ago, the lease term was of minimal concern. Luckily, he realised he needed to take steps soon on a lease extension. Cameron arranged for a lease extension just ahead of time in September. Cameron and the landlord in the end settled on the final figure of £5,500 . If the lease had descended below eighty years, the figure would have increased by at least £975.
Dr U Rivera acquired a first floor flat in Frampton on Severn in January 2006. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable homes in Frampton on Severn with a long lease were worth £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ran out on 12 March 2104. Considering the 79 years remaining we estimated the premium to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of expenses.
Mr and Mrs. U Cook owned a recently refurbished flat in Frampton on Severn in November 1995. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Frampton on Severn with a long lease were valued about £270,000. The average ground rent payable was £65 invoiced every twelve months. The lease lapsed in 2093. Having 68 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.