Frampton Cotterell leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Frampton Cotterell tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Frampton Cotterell you should investigate if your lease has between seventy and ninety years left. There are good reasons why a Frampton Cotterell leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in Frampton Cotterell with over 100 years unexpired 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
The lawyers that we work with procure 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 conveyancer we work with provide it.
Subsequent to lengthy correspondence with the freeholder of her leasehold apartment in Frampton Cotterell, Gemma started the lease extension process as the eighty year deadline was swiftly advancing. The lease extension was concluded in June 2012. The freeholder’s costs were negotiated to a tad over 450 pounds.
Last month we were phoned by Mr Adam Moore , who purchased a purpose-built apartment in Frampton Cotterell in August 2007. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative residencies in Frampton Cotterell with a long lease were valued around £174,200. The average ground rent payable was £55 billed monthly. The lease expired in 2077. Having 51 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.
Dr W Rogers took over the lease of a one bedroom flat in Frampton Cotterell in July 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Frampton Cotterell with an extended lease were valued about £285,000. The average ground rent payable was £45 collected quarterly. The lease concluded on 6 August 2097. Taking into account 71 years left we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.