When it comes to long leasehold premises in Bracebridge Heath, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years remaining. Leasehold owners in Bracebridge Heath with a lease drawing near to 81 years left should seriously consider extending it without delay. Once the lease term has less than 80 years left, under the relevant legislation the freeholder is entitled to calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Bracebridge Heath can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Bracebridge Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aaron owned a 2 bedroom flat in Bracebridge Heath being marketed with a lease of a few days over sixty years outstanding. Aaron on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Dr Millie James acquired a garden apartment in Bracebridge Heath in November 1997. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Bracebridge Heath with an extended lease were in the region of £186,000. The mid-range amount of ground rent was £65 collected yearly. The lease finished on 2 August 2083. Considering the 58 years unexpired we approximated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 plus expenses.
In 2013 we were called by Mr R Wilson who, having acquired a studio apartment in Bracebridge Heath in June 2009. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Bracebridge Heath with a long lease were valued about £250,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out in 2094. Given that there were 69 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.