Frampton on Severn residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to 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. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| 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. |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Dylan was the the leasehold proprietor of a conversion flat in Frampton on Severn being marketed with a lease of just over 61 years left. Dylan informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Dr V Pérez owned a one bedroom flat in Frampton on Severn in April 2011. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Frampton on Severn with a long lease were worth £210,000. The average amount of ground rent was £50 invoiced per annum. The lease ended in 2105. Taking into account 80 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
Mr G Jackson moved into a newly refurbished apartment in Frampton on Severn in November 2002. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative flats in Frampton on Severn with 100 year plus lease were valued around £275,000. The average amount of ground rent was £45 billed per annum. The lease elapsed in 2094. Taking into account 69 years left we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.