Unfortunately that a Frenchay residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Frenchay property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Frenchay will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Frenchay 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.
18 months ago Omar, came very near to the 80-year threshold with the lease on his garden apartment in Frenchay. In buying his property two decades ago, the unexpired term was of no interest. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Omar arranged for a lease extension just in the nick of time last August. Omar and the landlord in the end agreed on the final figure of £5,000 . If the lease had descended to less than 80 years, the premium would have become more costly by at least £900.
In 2011 we were called by Dr N Jones who, having was assigned a lease of a first floor apartment in Frenchay in November 2009. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative homes in Frenchay with a long lease were in the region of £166,800. The average ground rent payable was £50 billed quarterly. The lease elapsed on 14 October 2074. Taking into account 50 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including fees.
Last Christmas we were phoned by Dr A Girard , who moved into a one bedroom flat in Frenchay in June 2006. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Frenchay with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 collected yearly. The lease termination date was on 28 April 2094. Having 70 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.