Frampton on Severn leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher premium will be due. Leasehold owners in Frampton on Severn will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Frampton on Severn with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Frampton on Severn,the lease extension lawyers that we work with will always be prepared 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.
Eliot was the the leasehold proprietor of a 2 bedroom apartment in Frampton on Severn on the market with a lease of a little over 59 years outstanding. Eliot on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2009 we were called by Mr and Mrs. L Stewart who, having was assigned a lease of a studio flat in Frampton on Severn in November 2000. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar properties in Frampton on Severn with a long lease were valued about £184,000. The average ground rent payable was £55 billed per annum. The lease lapsed in 2078. Taking into account 53 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.
In 2009 we were approached by Ms W Baker who, having bought a garden flat in Frampton on Severn in June 2007. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Frampton on Severn with an extended lease were worth £290,000. The average ground rent payable was £45 collected monthly. The lease concluded in 2098. Taking into account 73 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.