It’s an underpublicised certainty that a Bracknell residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Bracknell property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Bracknell will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Bracknell with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Bracknell lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Nathan was the the leasehold proprietor of a studio flat in Bracknell being sold with a lease of just over sixty years outstanding. Nathan on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last Spring we were e-mailed by Mrs Hollie Williams , who took over the lease of a recently refurbished flat in Bracknell in August 2004. The question was if we could estimate the premium would be to prolong the lease by an additional years. Identical premises in Bracknell with a long lease were worth £240,600. The average ground rent payable was £65 billed yearly. The lease concluded on 6 May 2087. Given that there were 62 years remaining we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.
In 2013 we were contacted by Mr and Mrs. R Lambert who, having was assigned a lease of a one bedroom flat in Bracknell in May 2006. The question was if we could approximate the price would be for a 90 year extension to my lease. Identical properties in Bracknell with an extended lease were valued around £174,200. The average ground rent payable was £55 collected every twelve months. The lease came to a finish on 5 November 2076. Having 51 years outstanding we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.