Frenchay Common Lease Extension - Free Consultation

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Main reasons to commence your Frenchay Common lease extension


Why you should commence your Frenchay Common lease extension today:

A Frenchay Common lease depreciates with the years remaining on the lease.

Frenchay Common leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Frenchay Common residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Frenchay Common you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Frenchay Common with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

Lenders may decide not to issue a mortgage on a short lease

Most mortgage companies require a lengthy amount of time remaining on any leasehold residence before they will contemplate providing a mortgage on it. Even if you don't need a mortgage, you should keep in mind that it is reasonable to assume that someone intending to purchase your property in the future might well do, so where they are unable to obtain a mortgage, then the value of the property could be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are willing to lend on

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.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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.
Halifax Minimum 70 years from the date of the mortgage.

Get in touch with one of our Frenchay Common lease extension solicitors or enfranchisement solicitors

The lawyers that we work with handle Frenchay Common 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 lawyer we work with provide it.

Frenchay Common Lease Extension Example Cases:

Ibrahim, Frenchay Common, Bristol

During the course of the last few months Ibrahim, started to get near to the 80-year mark with the lease on his garden flat in Frenchay Common. In buying his flat two decades ago, the length of the lease was of little importance. by good luck, it dawned on him that he would imminently be paying way over the odds for a lease extension. Ibrahim arranged for a lease extension just under the wire in January. Ibrahim and the freeholder subsequently agreed on the final figure of £5,500 . If he had missed the deadline, the premium would have increased by at least £950.

Frenchay Common case:

Last year we were phoned by Mr and Mrs. O Khan , who was assigned a lease of a first floor apartment in Frenchay Common in March 1997. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical properties in Frenchay Common with an extended lease were valued around £246,800. The average ground rent payable was £60 collected quarterly. The lease came to a finish in 2075. Taking into account 50 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of expenses.

Frenchay Common case:

In 2010 we were e-mailed by Mr and Mrs. L White who, having owned a purpose-built apartment in Frenchay Common in June 1996. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Similar premises in Frenchay Common with 100 year plus lease were worth £203,200. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed on 20 February 2086. Taking into account 61 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.