Unfortunately that a Frampton on Severn residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Frampton on Severn property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be due. Most leasehold owners in Frampton on Severn will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Frampton on Severn 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 lengthy discussions with the freeholder of her purpose-built apartment in Frampton on Severn, Harriet started the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The legal work was finalised in September 2005. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr and Mrs. W Davies , who acquired a garden apartment in Frampton on Severn in July 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar flats in Frampton on Severn with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired on 27 April 2084. Taking into account 58 years left we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
Mrs J Bonnet took over the lease of a ground floor apartment in Frampton on Severn in August 2001. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Frampton on Severn with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 invoiced monthly. The lease concluded in 2104. Considering the 78 years unexpired we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.