The value of Frampton Cotterell leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is below than eighty years
Leasehold premises in Frampton Cotterell with over one hundred years left 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle 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 lawyer we work with provide it.
After protracted correspondence with the landlord of her garden flat in Frampton Cotterell, Victoria commenced the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The lease extension was concluded in September 2012. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr and Mrs. A Howard , who owned a one bedroom apartment in Frampton Cotterell in February 2010. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Identical properties in Frampton Cotterell with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 collected yearly. The lease terminated on 8 May 2095. Considering the 70 years left we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.
In 2009 we were e-mailed by Dr Milo Smith who, having acquired a first floor apartment in Frampton Cotterell in May 2012. The question was if we could approximate the price would be for a ninety year lease extension. Identical homes in Frampton Cotterell with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 collected annually. The lease elapsed in 2084. Taking into account 59 years unexpired we calculated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 plus legals.