When it comes to residential leasehold property in Framlingham, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years remaining. Residents in Framlingham with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has less than 80 years left, under the current Act the freeholder is entitled to calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same 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 |
|---|---|
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Framlingham can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
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 a wealth of experience dealing with Framlingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Michael, started to get near to the eighty-year threshold with the lease on his studio flat in Framlingham. Having bought his flat 18 years previously, the lease term was of minimal interest. Fortunately, he recognised he would imminently be paying an escalated premium for Extending the lease. Michael extended the lease just in the nick of time last July. Michael and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he not met the deadline, the price would have gone up by a minimum £925.
Ms Rosie Hernández moved into a ground floor flat in Framlingham in April 2000. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable flats in Framlingham with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced annually. The lease termination date was in 2080. Considering the 55 years unexpired we approximated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus professional charges.
Dr P Miller took over the lease of a newly refurbished flat in Framlingham in July 2001. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Identical flats in Framlingham with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced quarterly. The lease came to a finish on 22 August 2100. Considering the 75 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.