There is no doubt about it a leasehold flat or house in Bracebridge Heath is a wasting asset as a result of the diminishing lease term. Where the lease has, over 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Bracebridge Heath will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Bracebridge Heath,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bracebridge Heath valuers.
Zachary was the the leasehold owner of a high value flat in Bracebridge Heath being sold with a lease of just over sixty years remaining. Zachary informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mr M Evans bought a basement flat in Bracebridge Heath in March 1999. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical flats in Bracebridge Heath with an extended lease were worth £250,000. The mid-range ground rent payable was £50 billed yearly. The lease lapsed on 14 November 2095. Given that there were 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
Last Winter we were e-mailed by Mr and Mrs. C Phillips , who was assigned a lease of a purpose-built flat in Bracebridge Heath in March 2007. The question was if we could estimate the price would be for a 90 year extension to my lease. Identical premises in Bracebridge Heath with an extended lease were valued about £246,800. The mid-range ground rent payable was £60 collected per annum. The lease lapsed in 2075. Considering the 50 years left we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including expenses.