The only way is down when it comes to Braintree lease terms. Braintree leaseholds that have a remaining term fewer than 80 years will drop in market price even faster, and the cost to extend your lease will go up.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Braintree leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Leon, started to get close to the eighty-year threshold with the lease on his first floor flat in Braintree. In buying his property two decades ago, the lease term was of minimal interest. by good luck, he noticed he needed to take action soon on a lease extension. Leon was able to extend his lease at the eleventh hour last January. Leon and the freeholder via the managing agents ultimately settled on an amount of £6,000 . If he had missed the deadline, the figure would have increased by at least £1,100.
Last Winter we were contacted by Ms Phoebe Pérez , who acquired a one bedroom apartment in Braintree in June 2011. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparable homes in Braintree with a long lease were valued about £275,000. The average amount of ground rent was £55 billed quarterly. The lease finished in 2101. Having 76 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Dr Jack Robinson purchased a ground floor flat in Braintree in April 2008. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Braintree with a long lease were valued about £176,200. The average ground rent payable was £65 billed yearly. The lease ended on 13 April 2081. Considering the 56 years as a residual term we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus professional charges.