When it comes to domestic leasehold premises in Frampton Cotterell, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years left. Residents in Frampton Cotterell with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has below eighty years left, under the relevant legislation the freeholder can calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Chelsea 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. |
| 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. |
| 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 get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring 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.
Andrew owned a conversion apartment in Frampton Cotterell being marketed with a lease of just over fifty eight years outstanding. Andrew on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Andrew to exercise his statutory right. Andrew procured expert legal guidance and secured satisfactory resolution without going to tribunal and sell the property.
Ms U Williams purchased a one bedroom apartment in Frampton Cotterell in September 2008. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical flats in Frampton Cotterell with an extended lease were worth £191,400. The average amount of ground rent was £55 collected per annum. The lease finished on 23 July 2079. Given that there were 54 years remaining we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 plus expenses.
In 2009 we were e-mailed by Ms Lily Girard who, having completed a one bedroom apartment in Frampton Cotterell in June 2008. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Identical flats in Frampton Cotterell with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed quarterly. The lease concluded in 2099. Taking into account 74 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.