Chances are that if you own a flat in Frampton on Severn you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Frampton on Severn leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Muhammad, came dangerously close to the eighty-year threshold with the lease on his ground floor flat in Frampton on Severn. In buying his home two decades ago, the length of the lease was of little concern. Fortunately, he noticed he would soon be paying way over the odds for a lease extension. Muhammad was able to extend his lease at the eleventh hour in March. Muhammad and the freeholder in the end settled on the final figure of £5,000 . If the lease had dropped lower than eighty years, the sum would have escalated by at least £1,025.
Last month we were contacted by Dr Emma Brown , who acquired a ground floor apartment in Frampton on Severn in January 1997. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable homes in Frampton on Severn with an extended lease were worth £166,800. The average ground rent payable was £50 billed every twelve months. The lease terminated on 8 October 2076. Given that there were 50 years outstanding we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus legals.
Dr Kate Anderson completed a one bedroom flat in Frampton on Severn in October 2008. The dilemma was if we could approximate the price could be for a ninety year lease extension. Identical homes in Frampton on Severn with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ran out on 27 November 2096. Given that there were 70 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.