The market value of a leasehold property in Frampton on Severn is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be concluded ahead of the 80 year mark. Statute enables Frampton on Severn qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Frampton on Severn can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Frampton on Severn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Edward was the the leasehold owner of a 2 bedroom flat in Frampton on Severn on the market with a lease of a little over 72 years outstanding. Edward informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Edward to invoke his statutory right. Edward obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
In 2010 we were contacted by Dr Teddy Pérez who, having completed a basement apartment in Frampton on Severn in October 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparative homes in Frampton on Severn with 100 year plus lease were valued about £208,600. The mid-range ground rent payable was £60 invoiced annually. The lease expiry date was in 2082. Taking into account 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus fees.
Last Autumn we were phoned by Ms M Murphy , who was assigned a lease of a one bedroom flat in Frampton on Severn in July 2012. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical premises in Frampton on Severn with 100 year plus lease were valued around £200,000. The average amount of ground rent was £50 collected yearly. The lease expiry date was in 2102. Considering the 77 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.