Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Brampton. Inevitably, the length of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the residence has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Brampton have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. You should give due attention before putting off your Brampton lease extension. Putting off the cost now simply increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Using our service gives you enhanced control over the value of your Brampton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Alexander, started to get close to the 80-year mark with the lease on his ground floor flat in Brampton. Having purchased his property 18 years ago, the lease term was of little interest. As luck would have it, it dawned on him that he would soon be paying an inflated amount for a lease extension. Alexander was able to extend his lease just ahead of time in June. Alexander and the freeholder in the end agreed on the final figure of £5,000 . If he had missed the deadline, the price would have escalated by a minimum £1,100.
In 2009 we were e-mailed by Mr and Mrs. D Robinson who, having was assigned a lease of a basement apartment in Brampton in March 2008. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical residencies in Brampton with a long lease were worth £189,000. The average amount of ground rent was £55 billed every twelve months. The lease finished on 21 June 2078. Having 53 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.
Ms Laura Díaz acquired a first floor apartment in Brampton in January 1995. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable premises in Brampton with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 invoiced yearly. The lease lapsed on 13 April 2098. Having 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.