Unfortunately that a Bruton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Bruton property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. The majority of flat owners in Bruton will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Bruton with over 100 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bruton can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bruton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Charlie was the the leasehold owner of a conversion apartment in Bruton on the market with a lease of a little over 59 years outstanding. Charlie on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Charlie to invoke his statutory right. Charlie obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last July we were approach by Mrs S Miller , who moved into a studio flat in Bruton in October 1996. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar properties in Bruton with a long lease were valued about £300,000. The average amount of ground rent was £50 billed per annum. The lease came to a finish in 2100. Having 75 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
In 2012 we were e-mailed by Mr and Mrs. C Pérez who, having took over the lease of a studio apartment in Bruton in November 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Bruton with a long lease were worth £250,400. The average amount of ground rent was £65 billed annually. The lease ended on 5 April 2089. Considering the 64 years outstanding we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of fees.