As the length of the unexpired term of a Frenchay domestic lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner rather than later. Most flat owners in Frenchay will qualify for this right; nevertheless a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Frenchay with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Frenchay,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Frenchay valuers.
Harvey was the the leasehold proprietor of a 2 bedroom apartment in Frenchay being sold with a lease of a few days over fifty eight years remaining. Harvey on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking 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. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2012 we were phoned by Mr and Mrs. I Cox who, having bought a purpose-built apartment in Frenchay in May 1995. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar properties in Frenchay with a long lease were valued around £191,400. The average ground rent payable was £55 invoiced every twelve months. The lease ended on 11 November 2080. Having 54 years unexpired we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of professional charges.
Ms Mollie Harris moved into a one bedroom apartment in Frenchay in May 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Frenchay with an extended lease were in the region of £295,000. The average amount of ground rent was £45 invoiced annually. The lease ended in 2100. Considering the 74 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.