Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Bracknell. Inevitably, the period of lease remaining shortens over time. This may slip by relatively unnoticed when the residence needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Bracknell have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful deliberation before putting off your Bracknell lease extension. Holding off that expense now simply increases the price you will eventually incur for a lease extension
Leasehold premises in Bracknell with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Bracknell leasehold, as your property will be more valuable and marketable in terms 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.
Two years ago Freddie, started to get close to the eighty-year mark with the lease on his one bedroom flat in Bracknell. Having purchased his property two decades ago, the unexpired term was of little concern. As luck would have it, he noticed he needed to take steps soon on a lease extension. Freddie was able to extend his lease just under the wire in September. Freddie and the freeholder ultimately settled on a premium of £5,500 . If he not met the deadline, the figure would have increased by a minimum £1,050.
Last Summer we were called by Mr R Martin , who moved into a purpose-built flat in Bracknell in May 1996. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Bracknell with an extended lease were valued around £216,000. The mid-range ground rent payable was £60 collected per annum. The lease elapsed in 2083. Taking into account 58 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.
Last Autumn we were called by Dr C Carter , who moved into a one bedroom flat in Bracknell in June 2001. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical properties in Bracknell with an extended lease were worth £205,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out on 23 August 2103. Considering the 78 years remaining we approximated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 plus costs.