When it comes to domestic leasehold property in Frampton on Severn, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years left. Anyone in Frampton on Severn with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has below 80 years remaining, under the relevant legislation the freeholder can calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Frampton on Severn with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 experts that we work with will always be willing 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.
Off the back of protracted negotiations with the landlord of her one bedroom apartment in Frampton on Severn, Robyn commenced the lease extension process as the eighty year deadline was quickly coming. The lease extension was finalised in May 2013. The freeholder’s fees were restricted to approximately 500 pounds.
In 2014 we were contacted by Mrs Ashleigh Alexander who, having was assigned a lease of a newly refurbished flat in Frampton on Severn in May 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparative residencies in Frampton on Severn with an extended lease were worth £275,000. The mid-range amount of ground rent was £45 collected annually. The lease terminated on 17 February 2095. Taking into account 69 years outstanding we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
Dr Abbie Nguyen completed a ground floor apartment in Frampton on Severn in September 2010. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Identical premises in Frampton on Severn with a long lease were in the region of £216,000. The average amount of ground rent was £60 collected per annum. The lease ran out on 21 February 2084. Considering the 58 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.