Brackla leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Brackla residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Brackla you must investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Using our service gives you better control over the value of your Brackla leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the landlord of her ground floor flat in Brackla, Amber started the lease extension process just as the lease was coming close to the crucial 80-year deadline. The lease extension was finalised in February 2015. The freeholder’s fees were kept to an absolute minimum.
Dr Naomi Scott was assigned a lease of a newly refurbished apartment in Brackla in April 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative flats in Brackla with a long lease were in the region of £225,400. The mid-range ground rent payable was £45 billed every twelve months. The lease elapsed in 2089. Taking into account 64 years outstanding we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of legals.
Mr U Bertrand owned a one bedroom flat in Brackla in September 2004. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Brackla with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 collected annually. The lease ended on 6 August 2100. Taking into account 75 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.