Frenchay Common leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease dips below eighty years - otherwise a higher amount will be payable. Leasehold owners in Frenchay Common will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Frenchay Common with in excess of 100 years remaining 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Godiva Mortgages | 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. |
The conveyancing solicitors that we work with undertake Frenchay Common lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In recent months Aaron, started to get near to the 80-year threshold with the lease on his studio flat in Frenchay Common. In buying his property 19 years previously, the lease term was of little interest. Luckily, he noticed he needed to take steps soon on a lease extension. Aaron arranged for a lease extension just ahead of time in May. Aaron and the freeholder via the managing agents ultimately agreed on an amount of £5,000 . If the lease had gone below eighty years, the sum would have gone up by at least £1,025.
Mr T Allen completed a studio flat in Frenchay Common in April 2009. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable premises in Frenchay Common with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 billed every twelve months. The lease ended on 25 January 2103. Taking into account 77 years left we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
Mrs Jasmine Pérez completed a ground floor apartment in Frenchay Common in February 2006. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative flats in Frenchay Common with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 collected yearly. The lease termination date was in 2083. Having 57 years unexpired we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.