When it comes to residential leasehold property in Bracknell, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Bracknell with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has under eighty years remaining, under the relevant statute the landlord can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
During the course of the last few months Omar, started to get near to the eighty-year threshold with the lease on his ground floor flat in Bracknell. Having bought his property two decades ago, the lease term was of minimal importance. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Omar arranged for a lease extension just under the wire in January. Omar and the landlord subsequently agreed on an amount of £6,000 . If the lease had slipped below eighty years, the price would have become more exhorbitant by a minimum £1,150.
Last Christmas we were contacted by Mr and Mrs. G Miller , who completed a one bedroom apartment in Bracknell in April 1995. We are asked if we could approximate the price could be to extend the lease by 90 years. Similar homes in Bracknell with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 invoiced yearly. The lease ran out in 2081. Having 55 years left we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of legals.
Last month we were contacted by Ms M Girard , who owned a ground floor apartment in Bracknell in October 2002. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Similar premises in Bracknell with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed quarterly. The lease termination date was in 2101. Considering the 75 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.