Frampton on Severn residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold properties in Frampton on Severn with in excess of 100 years outstanding on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Frampton on Severn,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Frampton on Severn valuers.
Dexter was the the leasehold owner of a 2 bedroom apartment in Frampton on Severn being marketed with a lease of fraction over sixty years left. Dexter on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Last Spring we were phoned by Mr Nathan Flores , who acquired a ground floor flat in Frampton on Severn in March 2012. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative flats in Frampton on Severn with 100 year plus lease were in the region of £174,200. The mid-range ground rent payable was £55 collected quarterly. The lease expired in 2077. Having 51 years outstanding we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.
In 2009 we were phoned by Ms O Ali who, having moved into a one bedroom apartment in Frampton on Severn in October 1997. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable residencies in Frampton on Severn with an extended lease were valued about £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease came to a finish on 18 June 2097. Taking into account 71 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.