The market 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 expense of extending the lease can escalate materialy once the remaining term is below than 80 years
Leasehold residencies in Frampton on Severn with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Frampton on Severn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last Winter Blake, started to get close to the eighty-year mark with the lease on his two bedroom flat in Frampton on Severn. In buying his property 18 years ago, the unexpired term was of minimal interest. Fortunately, he realised he needed to take steps soon on Extending the lease. Blake arranged for a lease extension just under the wire last January. Blake and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the premium would have escalated by at least £950.
Last November we were called by Dr L David , who acquired a recently refurbished flat in Frampton on Severn in January 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar premises in Frampton on Severn with a long lease were worth £300,000. The average amount of ground rent was £50 collected annually. The lease terminated in 2101. Considering the 76 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
In 2014 we were e-mailed by Ms Alisha Rogers who, having moved into a purpose-built flat in Frampton on Severn in August 1996. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar homes in Frampton on Severn with 100 year plus lease were worth £252,800. The average ground rent payable was £65 collected every twelve months. The lease concluded on 27 September 2090. Having 65 years remaining we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus professional charges.