On the balance of probabilities where you own a flat in Frampton Cotterell you actually own a long leasehold interest over your property
Leasehold properties in Frampton Cotterell with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oliver was the the leasehold owner of a 2 bedroom apartment in Frampton Cotterell on the market with a lease of fraction over 72 years left. Oliver informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oliver to exercise his statutory right. Oliver obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were called by Mr and Mrs. U López who, having moved into a one bedroom apartment in Frampton Cotterell in March 1998. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Frampton Cotterell with an extended lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced annually. The lease lapsed on 20 September 2089. Taking into account 63 years outstanding we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including costs.
In 2014 we were approached by Mr and Mrs. B Richardson who, having was assigned a lease of a purpose-built flat in Frampton Cotterell in April 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar homes in Frampton Cotterell with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 invoiced monthly. The lease termination date was in 2078. Having 52 years outstanding we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus professional charges.