Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Frenchay Common. Clearly, the term of lease left reduces over time. This is often overlooked and only raises itself as an issue when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Frenchay Common have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. Please give due attention before delaying your Frenchay Common lease extension. Putting off that expense now simply increases the price you will eventually incur to extend your lease
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Frenchay Common leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the freeholder of her two bedroom apartment in Frenchay Common, Alicia commenced the lease extension process just as the lease was approaching the crucial 80-year mark. The lease extension was concluded in April 2013. The freeholder’s costs were restricted to approximately 650 pounds.
In 2013 we were contacted by Ms C García who, having bought a studio apartment in Frenchay Common in September 1999. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparative properties in Frenchay Common with an extended lease were worth £210,600. The mid-range ground rent payable was £45 collected every twelve months. The lease finished on 14 October 2088. Taking into account 62 years unexpired we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 not including professional charges.
In 2013 we were approached by Mr and Mrs. D Wright who, having was assigned a lease of a basement flat in Frenchay Common in January 2010. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable homes in Frenchay Common with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out on 7 May 2099. Considering the 73 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.