It’s a harsh certainty that a Frenchay Common residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Frenchay Common property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Frenchay Common will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Frenchay Common with over one hundred years unexpired on the lease are often 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.
| 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; |
| Chelsea 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. |
| 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. |
Lease extensions in Frenchay Common can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Frenchay Common lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Alfie, started to get near to the 80-year mark with the lease on his two bedroom apartment in Frenchay Common. In buying his property twenty years previously, the lease term was of minimal importance. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Alfie arranged for a lease extension just ahead of time in June. Alfie and the landlord ultimately settled on the final figure of £5,500 . If he had missed the deadline, the figure would have escalated by a minimum £1,050.
Last Summer we were called by Mr and Mrs. L Rose , who bought a studio flat in Frenchay Common in September 1998. The question was if we could estimate the price would be for a ninety year extension to my lease. Similar properties in Frenchay Common with an extended lease were valued about £218,000. The mid-range ground rent payable was £45 billed every twelve months. The lease terminated in 2088. Having 63 years remaining we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.
In 2011 we were phoned by Mr and Mrs. D David who, having owned a one bedroom flat in Frenchay Common in May 1998. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative properties in Frenchay Common with an extended lease were valued around £265,000. The average ground rent payable was £50 invoiced quarterly. The lease ran out in 2099. Given that there were 74 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.