There is no doubt about it a leasehold property in Bracknell is a wasting asset as a result of the shortening lease. If the residual term has, more than 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Bracknell will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 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 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis 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. |
Lease extensions in Bracknell can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 Bracknell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley owned a high value apartment in Bracknell being sold with a lease of fraction over fifty eight years outstanding. Stanley on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Stanley to exercise his statutory right. Stanley procured expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2010 we were called by Mr Liam Nguyen who, having acquired a recently refurbished apartment in Bracknell in August 2004. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative properties in Bracknell with 100 year plus lease were in the region of £223,400. The average amount of ground rent was £60 billed yearly. The lease finished on 5 April 2085. Having 59 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 not including fees.
Last year we were approach by Mrs H Bertrand , who bought a one bedroom flat in Bracknell in January 2008. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparable properties in Bracknell with a long lease were valued about £205,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed in 2105. Taking into account 79 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.