Fradley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Fradley tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Fradley you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Fradley with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Fradley can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Fradley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ollie was the the leasehold owner of a 2 bedroom apartment in Fradley on the market with a lease of just over 59 years left. Ollie informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2010 we were phoned by Dr Reuben Lefebvre who, having completed a basement apartment in Fradley in February 2007. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Comparable properties in Fradley with 100 year plus lease were valued around £261,600. The average ground rent payable was £60 invoiced quarterly. The lease expired in 2078. Considering the 52 years unexpired we estimated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus legals.
Dr Bethany François completed a studio flat in Fradley in May 2000. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Comparable residencies in Fradley with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended in 2089. Taking into account 63 years left we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 not including professional charges.