Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Frampton Cotterell. Clearly, the length of lease left reduces over time. This may pass by relatively unnoticed when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Frampton Cotterell have the legal entitlement to extend the lease for a further 90 years under statute. Please give careful attention before delaying your Frampton Cotterell lease extension. Holding off the cost now likely increases the price you will eventually incur for a lease extension
Leasehold properties in Frampton Cotterell with over 100 years left 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Frampton Cotterell can be a difficult process. We recommend you secure 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 dealing with 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.
Jude owned a 2 bedroom apartment in Frampton Cotterell on the market with a lease of just over 72 years unexpired. Jude on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Jude to exercise his statutory right. Jude obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were called by Mrs Rosie Michel who, having was assigned a lease of a recently refurbished apartment in Frampton Cotterell in September 2006. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical premises in Frampton Cotterell with an extended lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced annually. The lease came to a finish in 2083. Having 58 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.
In 2011 we were phoned by Mrs O Bonnet who, having moved into a purpose-built flat in Frampton Cotterell in June 1996. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Frampton Cotterell with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease expired on 28 October 2103. Taking into account 78 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.