As the the remaining lease term of a Frampton on Severn domestic lease diminished so does its value and therefore the value of your property. Where the lease has, over 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Frampton on Severn will meet the qualifying criteria; that being said a conveyancer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Frampton on Severn leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Kyle, came critically near to the 80-year mark with the lease on his leasehold flat in Frampton on Severn. Having bought his property 19 years ago, the length of the lease was of little significance. Thankfully, he noticed he would imminently be paying an escalated premium for Extending the lease. Kyle was able to extend his lease just ahead of time in May. Kyle and the freeholder in the end agreed on sum of £6,000 . If he had missed the deadline, the sum would have increased by at least £1,150.
Last month we were contacted by Mr and Mrs. S Bernard , who completed a garden apartment in Frampton on Severn in January 1998. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative flats in Frampton on Severn with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease terminated on 10 March 2079. Considering the 55 years remaining we approximated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus professional charges.
In 2013 we were contacted by Mrs T Gunderson who, having completed a first floor flat in Frampton on Severn in March 2003. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative premises in Frampton on Severn with an extended lease were worth £300,000. The average amount of ground rent was £50 collected monthly. The lease ended in 2099. Given that there were 75 years left we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.