The value of Frampton on Severn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than eighty years
Leasehold properties in Frampton on Severn with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 procure guidance from a conveyancing solicitor 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 dealing with 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.
Last year Tommy, started to get close to the 80-year mark with the lease on his ground floor flat in Frampton on Severn. In buying his home twenty years previously, the lease term was of no relevance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Tommy arranged for a lease extension at the eleventh hour in June. Tommy and the freeholder via the managing agents eventually settled on a premium of £5,000 . If he not met the deadline, the price would have become more exhorbitant by a minimum £1,100.
In 2009 we were contacted by Mr and Mrs. T Morel who, having owned a studio flat in Frampton on Severn in January 1995. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical properties in Frampton on Severn with an extended lease were in the region of £270,000. The average ground rent payable was £65 invoiced annually. The lease came to a finish in 2093. Taking into account 68 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2010 we were approached by Dr T Green who, having completed a purpose-built flat in Frampton on Severn in May 2004. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparative homes in Frampton on Severn with 100 year plus lease were valued about £208,600. The average amount of ground rent was £60 billed yearly. The lease elapsed in 2082. Considering the 57 years remaining we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.