With a long leasehold property in Frampton Cotterell, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Anyone in Frampton Cotterell with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has below 80 years left, under the current Act the landlord is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Frampton Cotterell with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Frampton Cotterell,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Frampton Cotterell valuers.
Last October Finn, started to get close to the eighty-year mark with the lease on his first floor flat in Frampton Cotterell. In buying his flat twenty years ago, the length of the lease was of no significance. Luckily, he realised he needed to take steps soon on a lease extension. Finn was able to extend his lease just under the wire last May. Finn and the landlord who owned the flat above subsequently settled on sum of £5,500 . If the lease had descended to less than 80 years, the figure would have gone up by a minimum £1,075.
In 2014 we were called by Mr and Mrs. A Khan who, having was assigned a lease of a recently refurbished flat in Frampton Cotterell in September 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Frampton Cotterell with an extended lease were in the region of £208,600. The mid-range amount of ground rent was £60 collected per annum. The lease expired on 17 October 2083. Considering the 57 years remaining we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus legals.
Dr Y Fournier owned a basement apartment in Frampton Cotterell in July 2010. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable residencies in Frampton Cotterell with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 invoiced annually. The lease ran out in 2103. Taking into account 77 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.