It’s a harsh certainty that a South Brent residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the South Brent property market.Where your lease has approximately ninety years left, you need to start thinking about 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 dips lower than 80 years - otherwise a higher premium will be due. Most flat owners in South Brent will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your South Brent leasehold, as your property will be more valuable and saleable in relation to the 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.
George was the the leasehold owner of a 2 bedroom flat in South Brent being sold with a lease of a few days over fifty eight years outstanding. George informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2013 we were called by Mr and Mrs. B Mercier who, having completed a basement apartment in South Brent in October 2000. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in South Brent with a long lease were in the region of £218,000. The average amount of ground rent was £45 invoiced yearly. The lease elapsed in 2088. Taking into account 63 years unexpired we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of professional charges.
Mr I Gunderson moved into a one bedroom flat in South Brent in January 2000. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparative residencies in South Brent with an extended lease were worth £265,000. The average ground rent payable was £55 invoiced quarterly. The lease elapsed on 18 April 2099. Taking into account 74 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.