Unfortunately that a Frampton Cotterell residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Frampton Cotterell property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term slips under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Frampton Cotterell will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you increased control over the value of your Frampton Cotterell leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Stanley, started to get close to the eighty-year mark with the lease on his ground floor apartment in Frampton Cotterell. Having purchased his flat 19 years ago, the length of the lease was of little concern. Thankfully, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Stanley arranged for a lease extension just under the wire in August. Stanley and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If the lease had descended to less than 80 years, the sum would have gone up by a minimum £1,050.
In 2011 we were phoned by Dr W Clarke who, having moved into a ground floor flat in Frampton Cotterell in May 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Similar homes in Frampton Cotterell with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 collected monthly. The lease expired in 2100. Having 74 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
Mr Alfie Simon moved into a one bedroom flat in Frampton Cotterell in September 1999. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical premises in Frampton Cotterell with an extended lease were valued around £243,000. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed on 24 February 2089. Taking into account 63 years remaining we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of expenses.