With a long leasehold property in Frenchay, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Anyone in Frenchay with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has under eighty years left, under the relevant statute the landlord can calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Frenchay can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 in-depth market knowledge 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.
Trailing protracted negotiations with the landlord of her basement flat in Frenchay, Holly started the lease extension process as the 80 year threshold was quickly nearing. The lease extension was finalised in May 2012. The landlord’s charges were kept to an absolute minimum.
Last year we were e-mailed by Mr Jackson Harris , who bought a basement flat in Frenchay in June 1995. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Similar premises in Frenchay with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 billed annually. The lease concluded on 9 October 2090. Considering the 64 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of legals.
In 2012 we were called by Mr and Mrs. R Johnson who, having bought a studio flat in Frenchay in September 2002. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable premises in Frenchay with an extended lease were worth £184,000. The average ground rent payable was £55 billed yearly. The lease finished in 2079. Having 53 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.