Frenchay leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Frenchay tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Frenchay you should see if your lease has between seventy and ninety years remaining. There are good reasons why a Frenchay flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Frenchay can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 a wealth of experience dealing with Frenchay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the freeholder of her purpose-built apartment in Frenchay, Molly started the lease extension process just as her lease was approaching the crucial eighty-year mark. The legal work was finalised in January 2007. The landlord’s charges were restricted to a tad over 450 GBP.
In 2010 we were called by Mrs Grace Laurent who, having bought a one bedroom flat in Frenchay in September 2011. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable residencies in Frenchay with a long lease were in the region of £218,400. The mid-range ground rent payable was £60 billed annually. The lease expired in 2084. Having 59 years remaining we estimated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of fees.
Last Spring we were contacted by Mr and Mrs. W Norbert , who completed a one bedroom flat in Frenchay in May 2005. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical residencies in Frenchay with an extended lease were worth £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease ended in 2104. Having 79 years unexpired we calculated the premium to the landlord for the lease extension to be between £7,600 and £8,800 plus fees.