The value of Brackla leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is below than eighty years
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Retaining our service will provide you increased control over the value of your Brackla leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy correspondence with the landlord of her leasehold flat in Brackla, Lydia started the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension was finalised in January 2007. The landlord’s fees were kept to an absolute minimum.
In 2013 we were called by Mrs Alice Moreau who, having moved into a newly refurbished apartment in Brackla in April 1998. The question was if we could estimate the premium would be to extend the lease by ninety years. Identical properties in Brackla with an extended lease were worth £242,600. The mid-range ground rent payable was £45 invoiced annually. The lease concluded in 2092. Considering the 67 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of legals.
In 2009 we were called by Dr Ellie Miller who, having owned a newly refurbished apartment in Brackla in May 2003. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical homes in Brackla with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 collected annually. The lease expired in 2103. Having 78 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.