The market value of Framlingham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is less than 80 years
Leasehold properties in Framlingham with more than one hundred years outstanding on the lease are often 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 upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Framlingham can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 in-depth market knowledge procuring Framlingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn was the the leasehold owner of a conversion flat in Framlingham being sold with a lease of fraction over sixty years unexpired. Finn on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Dr V Smith moved into a ground floor apartment in Framlingham in May 2004. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Framlingham with a long lease were in the region of £240,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded in 2087. Considering the 62 years unexpired we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including expenses.
Mrs Amy Flores took over the lease of a studio apartment in Framlingham in January 2005. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative residencies in Framlingham with 100 year plus lease were valued about £174,200. The average amount of ground rent was £55 billed every twelve months. The lease expired on 6 August 2076. Given that there were 51 years remaining we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus expenses.