When it comes to domestic leasehold property in Frenchay, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Leasehold owners in Frenchay with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. When a lease has under eighty years left, under the relevant Act the landlord can calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake Frenchay 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 conveyancer we work with provide it.
After protracted discussions with the freeholder of her leasehold apartment in Frenchay, Ella commenced the lease extension process as the eighty year threshold was quickly approaching. The lease extension was finalised in November 2013. The freeholder’s costs were restricted to approximately 650 GBP.
Last Autumn we were called by Dr James Thomas , who completed a garden flat in Frenchay in February 2004. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Frenchay with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 billed yearly. The lease ended on 5 March 2096. Having 72 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
In 2009 we were approached by Dr B François who, having acquired a one bedroom flat in Frenchay in September 2007. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Frenchay with a long lease were valued around £233,200. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed on 28 November 2085. Considering the 61 years unexpired we calculated the premium to the landlord to extend the lease to be between £22,800 and £26,400 plus fees.