With a residential leasehold property in Frampton on Severn, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years left. Anyone in Frampton on Severn with a lease approaching 81 years unexpired should seriously think of extending it without delay. When a lease has below 80 years remaining, under the relevant statute the freeholder can calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Frampton on Severn with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Frampton on Severn can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 a wealth of experience 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.
Alexander owned a 2 bedroom apartment in Frampton on Severn on the market with a lease of just over fifty eight years left. Alexander on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Alexander to invoke his statutory right. Alexander procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2010 we were called by Mr V Murphy who, having was assigned a lease of a purpose-built flat in Frampton on Severn in April 2009. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative properties in Frampton on Severn with an extended lease were valued around £181,600. The average amount of ground rent was £55 collected every twelve months. The lease expired on 8 May 2077. Taking into account 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including fees.
Last Autumn we were phoned by Mr and Mrs. J Morel , who bought a basement flat in Frampton on Severn in May 2000. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in Frampton on Severn with a long lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ended in 2097. Considering the 72 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.