Chances are that where you own a flat in Brentwood you actually own a long leasehold interest over your property
Leasehold residencies in Brentwood with more than 100 years left 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Brentwood 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 lawyer we work with provide it.
William owned a conversion apartment in Brentwood on the market with a lease of a little over fifty eight years left. William informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were William to invoke his statutory right. William obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Mr and Mrs. T Robinson who, having owned a first floor apartment in Brentwood in November 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Brentwood with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired in 2088. Having 63 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Brentwood flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case affected 1 flat. The number of years remaining on the existing lease(s) was 57.5 years.