For those whose Bracknell flat is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Bracknell with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Bracknell,the lease extension solicitors 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.
Last year Toby, came very near to the 80-year mark with the lease on his first floor apartment in Bracknell. In buying his property twenty years previously, the unexpired term was of no relevance. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Toby extended the lease just under the wire in March. Toby and the freeholder eventually settled on a premium of £5,000 . If he had missed the deadline, the premium would have gone up by at least £925.
In 2014 we were called by Mrs Lucy Martinez who, having owned a studio apartment in Bracknell in August 1999. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Bracknell with an extended lease were worth £265,200. The average ground rent payable was £65 invoiced quarterly. The lease ran out in 2091. Having 66 years outstanding we estimated the premium to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of expenses.
Last Spring we were contacted by Mr and Mrs. D Bernard , who purchased a ground floor flat in Bracknell in February 2012. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable residencies in Bracknell with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished on 28 July 2080. Taking into account 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.