Why you should start your Bracknell lease extension
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Why you should commence your Bracknell lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/bracknell">Bracknell</a> property value </h4>
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Bracknell leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Bracknell will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
<h4>Bracknell property with a lease extension is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
<h4>Lenders may not issue a mortgage on a short lease</h4> Banks and building societies differ in their lending requirements. Some draw the line at seventy five years outstanding on the lease; others may be prepared to lend with anything over seventy years. Below sixty years, it may be impossible to obtain a mortgage in the first place.
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<td>Coventry Building Society</td>
<td> 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.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
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<td>Yorkshire Building Society</td>
<td> 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.
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<h4> Get in touch with one of our Bracknell lease extension solicitors or enfranchisement solicitors
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<p> Engaging our service will provide you better 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Bracknell Lease Extension Example Cases:
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<h5> Arthur, Bracknell, Berkshire</h5>
<p> Half a year ago Arthur, came perilously close to the eighty-year threshold with the lease on his garden flat in Bracknell. In buying his home two decades ago, the lease term was of no significance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Arthur arranged for a lease extension just under the wire last May. Arthur and the landlord who owned the flat above subsequently settled on sum of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £975.
<h5>Bracknell case:</h5>
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In 2014 we were contacted by Ms Rosie Nguyen who, having completed a garden apartment in Bracknell in March 2006. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparative premises in Bracknell with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish in 2100. Considering the 74 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
<h5>Bracknell case:</h5>
<p> Mr and Mrs. J Robinson bought a first floor apartment in Bracknell in June 2004. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar homes in Bracknell with a long lease were in the region of £248,000. The average amount of ground rent was £65 invoiced per annum. The lease terminated in 2089. Considering the 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including fees.
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