The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bracknell have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Bracknell lease extension. Postponing that expense today simply escalates the price you will ultimately be required to pay for a lease extension.
Leasehold properties in Bracknell with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Bracknell,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bracknell valuers.
Ibrahim was the the leasehold owner of a high value apartment in Bracknell on the market with a lease of fraction over fifty eight years unexpired. Ibrahim informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Ms Aimee Kelly acquired a one bedroom apartment in Bracknell in July 1996. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative residencies in Bracknell with a long lease were in the region of £189,000. The mid-range ground rent payable was £55 billed every twelve months. The lease elapsed on 26 August 2078. Given that there were 53 years remaining we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.
Last Autumn we were called by Mr Sam Mason , who was assigned a lease of a first floor apartment in Bracknell in June 2007. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar residencies in Bracknell with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease terminated in 2098. Considering the 73 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.