When it comes to long leasehold premises in Frenchay Common, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years left. Anyone in Frenchay Common with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has fewer than eighty years remaining, under the relevant statute the freeholder can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
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 conveyancing solicitor we work with provide it.
After unsuccessful correspondence with the freeholder of her studio apartment in Frenchay Common, Ellie commenced the lease extension process as the eighty year mark was fast advancing. The lease extension completed in February 2015. The landlord’s charges were negotiated to below 550 GBP.
Last year we were approach by Mr and Mrs. U Baker , who completed a studio apartment in Frenchay Common in April 2001. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative premises in Frenchay Common with an extended lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected quarterly. The lease finished on 12 February 2076. Taking into account 50 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus fees.
In 2010 we were approached by Mr and Mrs. J Murphy who, having acquired a studio apartment in Frenchay Common in February 2012. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparable residencies in Frenchay Common with an extended lease were in the region of £203,200. The mid-range ground rent payable was £65 billed per annum. The lease came to a finish on 20 May 2087. Having 61 years unexpired we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of costs.