With a domestic leasehold premises in Frenchay, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years remaining. Anyone in Frenchay with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. Once a lease has under 80 years left, under the relevant statute the freeholder can calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander |
Using our service will provide you increased control over the value of your Frenchay leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kyle owned a high value flat in Frenchay being marketed with a lease of a few days over fifty eight years unexpired. Kyle informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder 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 increase every twenty five years thereafter. No ground rent would be due on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert advice and secured an acceptable deal informally and sell the flat.
In 2011 we were called by Mr and Mrs. Y Sánchez who, having took over the lease of a one bedroom flat in Frenchay in August 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical flats in Frenchay with an extended lease were in the region of £181,600. The average ground rent payable was £55 billed annually. The lease concluded in 2078. Taking into account 52 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus professional charges.
In 2013 we were approached by Dr Tyler Dupont who, having owned a one bedroom apartment in Frenchay in January 2004. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparable flats in Frenchay with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished in 2098. Considering the 72 years unexpired we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.