Frenchay Common leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Frenchay Common enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Frenchay Common you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Frenchay Common flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold properties in Frenchay Common with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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 freeholder in Frenchay Common,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Frenchay Common valuers.
Trailing lengthy discussions with the landlord of her leasehold apartment in Frenchay Common, Eleanor initiated the lease extension process as the 80 year mark was fast advancing. The transaction was concluded in November 2010. The landlord’s fees were kept to an absolute minimum.
In 2014 we were approached by Mr and Mrs. J Flores who, having owned a recently refurbished apartment in Frenchay Common in July 2009. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative homes in Frenchay Common with 100 year plus lease were in the region of £237,600. The average ground rent payable was £45 billed monthly. The lease ended on 8 May 2092. Taking into account 67 years left we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including legals.
In 2011 we were contacted by Dr Alexander Morel who, having bought a recently refurbished flat in Frenchay Common in June 2003. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Identical premises in Frenchay Common with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease elapsed on 5 April 2103. Having 78 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.