Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Frenchay. Inevitably, the period of lease left reduces over time. This is often overlooked and only becomes a problem when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Frenchay have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. Do give due consideration before delaying your Frenchay lease extension. Holding off the cost now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Frenchay,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 valuers.
Alfie was the the leasehold proprietor of a conversion apartment in Frenchay on the market with a lease of a little over fifty eight years left. Alfie on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Alfie to exercise his statutory right. Alfie procured expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
Mrs Francesca Allen acquired a basement apartment in Frenchay in November 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable flats in Frenchay with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected annually. The lease lapsed on 10 April 2098. Considering the 73 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2009 we were called by Mr and Mrs. L Richardson who, having acquired a basement flat in Frenchay in March 1998. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative flats in Frenchay with 100 year plus lease were worth £240,600. The mid-range amount of ground rent was £60 billed per annum. The lease end date was in 2087. Having 62 years outstanding we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.