Top reasons for Frampton Cotterell lease extension

Top reasons for lease extension now:

A Frampton Cotterell leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Frampton Cotterell depends on how many years the lease has left to run. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be finalised well before the 80 year mark. Leasehold Reform legislation enables Frampton Cotterell qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Frampton Cotterell with more than one hundred years outstanding 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may not loan monies with a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on any leasehold property before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should bear in mind that it is reasonable to assume that someone wanting to acquire your property in the future might well do, so in the event that they can't get a mortgage, then the financial worth of your property will likely be adversely impacted. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are willing to accept

Get in touch with one of our Frampton Cotterell lease extension solicitors or enfranchisement solicitors

Lease extensions in Frampton Cotterell can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.

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.

Frampton Cotterell Lease Extension Example Cases:

Ben, Frampton Cotterell, Gloucestershire,

Ben owned a 2 bedroom apartment in Frampton Cotterell on the market with a lease of just over 61 years remaining. Ben on an informal basis spoke with his freeholder a well known local-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 at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ben to exercise his statutory right. Ben obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.

Frampton Cotterell case:

In 2014 we were approached by Dr Kate Green who, having was assigned a lease of a studio flat in Frampton Cotterell in February 2007. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative premises in Frampton Cotterell with a long lease were valued about £206,200. The average ground rent payable was £55 billed annually. The lease ended on 4 November 2082. Taking into account 56 years left we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of costs.

Frampton Cotterell case:

Last year we were contacted by Mr and Mrs. D Nelson , who owned a first floor flat in Frampton Cotterell in March 2004. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical flats in Frampton Cotterell with an extended lease were worth £300,000. The average ground rent payable was £50 billed quarterly. The lease terminated in 2102. Given that there were 76 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.