It’s a harsh truth that a Frenchay Common residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Frenchay Common property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property 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 qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Frenchay Common can be a difficult process. We recommend you obtain professional help 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.
Half a year ago Jamie, started to get close to the eighty-year threshold with the lease on his leasehold flat in Frenchay Common. In buying his flat two decades ago, the length of the lease was of little significance. Fortunately, he noticed he needed to take action soon on Extending the lease. Jamie arranged for a lease extension at the eleventh hour last March. Jamie and the landlord eventually settled on sum of £6,000 . If the lease had dipped below eighty years, the sum would have increased by a minimum £1,125.
Mr and Mrs. L Lee purchased a garden flat in Frenchay Common in January 2004. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar flats in Frenchay Common with an extended lease were valued around £193,400. The mid-range ground rent payable was £65 billed yearly. The lease ran out in 2084. Taking into account 59 years left we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.
In 2009 we were phoned by Mr Theo Scott who, having completed a studio apartment in Frenchay Common in August 2011. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparative residencies in Frenchay Common with an extended lease were worth £250,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease expired on 7 July 2095. Having 70 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.