When it comes to domestic leasehold property in Frenchay Common, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Anyone in Frenchay Common with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under eighty years outstanding, under the relevant legislation the landlord can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Frenchay Common,the lease extension experts 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 Frenchay Common valuers.
16 months ago Callum, started to get close to the 80-year mark with the lease on his first floor apartment in Frenchay Common. Having bought his flat twenty years ago, the length of the lease was of little relevance. by good luck, he became aware that he needed to take action soon on Extending the lease. Callum arranged for a lease extension just under the wire last January. Callum and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he had missed the deadline, the price would have increased by a minimum £1,150.
Last Winter we were phoned by Dr D Davis , who took over the lease of a ground floor flat in Frenchay Common in August 2002. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Similar properties in Frenchay Common with a long lease were in the region of £255,000. The average amount of ground rent was £50 billed quarterly. The lease came to a finish on 19 August 2096. Having 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2013 we were e-mailed by Dr James Gunderson who, having purchased a purpose-built apartment in Frenchay Common in August 2009. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Identical flats in Frenchay Common with an extended lease were valued about £254,200. The average ground rent payable was £60 collected monthly. The lease terminated in 2076. Considering the 51 years outstanding we estimated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of fees.