Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Frenchay. Inevitably, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Frenchay have the legal entitlement to extend the lease for a further ninety years under legislation. You should give due attention before putting off your Frenchay lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Frenchay can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Frenchay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson owned a 2 bedroom apartment in Frenchay on the market with a lease of fraction over 72 years outstanding. Jackson informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Dr Chelsea Reed purchased a ground floor flat in Frenchay in May 2000. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative flats in Frenchay with a long lease were in the region of £181,600. The average ground rent payable was £55 billed per annum. The lease finished in 2077. Having 52 years remaining we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.
Mrs Megan Cooper purchased a ground floor apartment in Frenchay in May 2001. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparative premises in Frenchay with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded in 2097. Given that there were 72 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.