Frampton Cotterell residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers 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 conveyancing solicitor we work with provide it.
Gabriel was the the leasehold proprietor of a studio apartment in Frampton Cotterell on the market with a lease of a few days over 59 years unexpired. Gabriel informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Mr and Mrs. I González acquired a garden flat in Frampton Cotterell in January 2006. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Frampton Cotterell with a long lease were valued about £181,600. The average ground rent payable was £55 billed every twelve months. The lease expired in 2078. Having 52 years outstanding we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.
Last Autumn we were called by Mr and Mrs. G Baker , who took over the lease of a recently refurbished apartment in Frampton Cotterell in October 1998. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Frampton Cotterell with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease elapsed in 2098. Taking into account 72 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.