The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Frenchay Common have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Frenchay Common lease extension. Shelving that expense today simply increases the amount you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Owen owned a high value apartment in Frenchay Common on the market with a lease of fraction over fifty eight years remaining. Owen on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert advice and secured satisfactory deal informally and readily saleable.
In 2010 we were e-mailed by Dr M David who, having acquired a recently refurbished flat in Frenchay Common in June 2003. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Frenchay Common with an extended lease were valued around £200,800. The mid-range ground rent payable was £65 invoiced monthly. The lease ended in 2085. Given that there were 60 years outstanding we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 not including fees.
Mr and Mrs. R Peterson took over the lease of a first floor flat in Frenchay Common in March 1999. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Frenchay Common with an extended lease were worth £255,000. The average amount of ground rent was £50 billed yearly. The lease concluded in 2096. Taking into account 71 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.