On the balance of probabilities if you own a flat in Braintree you actually own a long leasehold interest over your property
Leasehold properties in Braintree with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| 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 handle Braintree 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 Gabriel, started to get close to the 80-year threshold with the lease on his basement apartment in Braintree. Having bought his property two decades ago, the unexpired term was of minimal bearing. Thankfully, he recognised he needed to take steps soon on Extending the lease. Gabriel extended the lease at the eleventh hour last July. Gabriel and the freeholder via the managing agents ultimately settled on an amount of £5,500 . If the lease had slipped lower than 80 years, the sum would have become more exhorbitant by a minimum £1,000.
Mrs S Walker was assigned a lease of a one bedroom apartment in Braintree in July 2000. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar properties in Braintree with a long lease were valued about £166,400. The mid-range ground rent payable was £60 collected per annum. The lease concluded in 2078. Given that there were 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of fees.
In 2009 we were phoned by Dr I Miller who, having took over the lease of a one bedroom apartment in Braintree in July 2010. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparative premises in Braintree with an extended lease were in the region of £232,800. The mid-range ground rent payable was £45 invoiced monthly. The lease expiry date was in 2089. Having 65 years remaining we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.