For anyone whose Frampton Cotterell flat is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
Leasehold premises in Frampton Cotterell with over one hundred years left 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit 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; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Frampton Cotterell can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 Frampton Cotterell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the freeholder of her leasehold flat in Frampton Cotterell, Natalie initiated the lease extension process as the eighty year deadline was swiftly advancing. The transaction was concluded in May 2009. The landlord’s fees were kept to an absolute minimum.
In 2014 we were approached by Mr and Mrs. I Rivera who, having acquired a first floor apartment in Frampton Cotterell in February 2012. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative properties in Frampton Cotterell with an extended lease were valued about £240,600. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated on 24 July 2087. Having 62 years left we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus expenses.
In 2014 we were contacted by Mr B Phillips who, having purchased a ground floor flat in Frampton Cotterell in October 2001. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Identical premises in Frampton Cotterell with an extended lease were in the region of £174,200. The average amount of ground rent was £55 billed annually. The lease came to a finish on 17 March 2076. Given that there were 51 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including professional charges.