Bracknell leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Bracknell tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Bracknell you should see if your lease has between 70 and 90 years remaining. There are good reasons why a Bracknell leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bracknell can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Bracknell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alex owned a conversion apartment in Bracknell being sold with a lease of a few days over sixty years outstanding. Alex informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Alex to invoke his statutory right. Alex obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Ms Katie Peterson owned a ground floor apartment in Bracknell in February 2000. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative flats in Bracknell with a long lease were valued around £280,000. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed in 2096. Taking into account 70 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
Last month we were called by Ms Imogen Lefebvre , who owned a garden apartment in Bracknell in May 1999. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical properties in Bracknell with a long lease were in the region of £223,400. The average ground rent payable was £60 billed quarterly. The lease lapsed on 13 October 2085. Considering the 59 years outstanding we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 not including legals.