Frenchay leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Frenchay will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Frenchay leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Tommy, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Frenchay. Having purchased his home 18 years ago, the length of the lease was of no importance. Fortunately, he recognised he needed to take steps soon on Extending the lease. Tommy was able to extend his lease just ahead of time last May. Tommy and the freeholder via the management company ultimately settled on sum of £6,000 . If he had missed the deadline, the premium would have become more exhorbitant by a minimum £1,000.
In 2011 we were called by Mr and Mrs. A Murphy who, having purchased a one bedroom flat in Frenchay in January 1998. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparable homes in Frenchay with a long lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease elapsed on 22 June 2102. Taking into account 78 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last Christmas we were called by Dr J Adams , who purchased a basement flat in Frenchay in May 2007. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Comparative properties in Frenchay with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 billed monthly. The lease came to a finish on 9 January 2091. Taking into account 67 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of expenses.