Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Frampton Cotterell. Clearly, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Frampton Cotterell have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give due deliberation before putting off your Frampton Cotterell lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold residencies in Frampton Cotterell with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Frampton Cotterell lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Benjamin, came dangerously close to the eighty-year mark with the lease on his studio apartment in Frampton Cotterell. In buying his flat two decades ago, the length of the lease was of little relevance. by good luck, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Benjamin was able to extend his lease just under the wire last April. Benjamin and the freeholder in the end agreed on a premium of £6,000 . If he had missed the deadline, the price would have gone up by a minimum £950.
Ms Kirsty Williams moved into a purpose-built apartment in Frampton Cotterell in November 2012. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative flats in Frampton Cotterell with a long lease were in the region of £260,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ran out on 8 March 2091. Considering the 66 years left we approximated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 plus costs.
Mrs Sophie White moved into a one bedroom apartment in Frampton Cotterell in June 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Frampton Cotterell with an extended lease were worth £198,800. The average ground rent payable was £55 billed every twelve months. The lease expiry date was in 2080. Taking into account 55 years unexpired we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus expenses.