When it comes to domestic leasehold property in Brentford, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Residents in Brentford with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has less than eighty years left, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Brentford with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you better control over the value of your Brentford leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the freeholder of her leasehold apartment in Brentford, Madeleine initiated the lease extension process as the 80 year mark was fast approaching. The lease extension completed in October 2013. The freeholder’s charges were restricted to slightly above 450 GBP.
Mr and Mrs. U Norbert moved into a first floor flat in Brentford in February 2006. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Identical residencies in Brentford with 100 year plus lease were worth £206,200. The average ground rent payable was £60 collected yearly. The lease came to a finish on 20 January 2081. Having 56 years left we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Brentford residence is 105 & 105A Seaford Road in July 2013. The tribunal determined that the price payable for the freehold interest in the Property was £43,985 . This sum was to be paid into Brentford County Court to enable the matter to proceed This case related to 2 flats.