Brackla residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold residencies in Brackla with over one hundred years remaining 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 property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date 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 Brackla can be a difficult process. We recommend you procure guidance from a lawyer 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 in-depth market knowledge dealing with Brackla lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful correspondence with the landlord of her one bedroom flat in Brackla, Emma commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The transaction was finalised in May 2011. The freeholder’s costs were negotiated to approximately four hundred GBP.
Last Summer we were approach by Mrs Victoria Girard , who acquired a garden apartment in Brackla in January 2003. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Brackla with 100 year plus lease were valued around £210,600. The average amount of ground rent was £45 invoiced quarterly. The lease termination date was on 3 August 2088. Taking into account 62 years unexpired we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus legals.
Last Autumn we were phoned by Dr Nathaniel Lee , who moved into a basement flat in Brackla in October 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable properties in Brackla with a long lease were worth £265,000. The average amount of ground rent was £50 billed annually. The lease finished on 26 June 2099. Having 73 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.