The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Frenchay Common have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Please think carefully before delaying your Frenchay Common lease extension. Postponing the costs today simply escalates the amount you will ultimately have to pay to extend the lease.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless 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.
Half a year ago Edward, started to get near to the 80-year threshold with the lease on his one bedroom flat in Frenchay Common. In buying his flat 19 years ago, the unexpired term was of no relevance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Edward extended the lease just ahead of time in September. Edward and the landlord in the end settled on sum of £5,000 . If the lease had slid to less than eighty years, the premium would have escalated by at least £1,025.
Mr and Mrs. M Cooper moved into a basement flat in Frenchay Common in May 2007. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Identical flats in Frenchay Common with an extended lease were worth £242,600. The mid-range ground rent payable was £45 collected annually. The lease lapsed on 28 February 2093. Having 67 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus professional charges.
Last month we were called by Mr and Mrs. U Simon , who was assigned a lease of a purpose-built flat in Frenchay Common in November 2007. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparable flats in Frenchay Common with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 invoiced every twelve months. The lease finished in 2104. Considering the 78 years remaining we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.