Unfortunately that a Brackley residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Brackley property prices.Where your lease has approximately 90 years left, you should start considering 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 slips lower than 80 years - otherwise a higher premium will be payable. The majority of flat owners in Brackley will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Brackley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Samuel was the the leasehold owner of a conversion flat in Brackley on the market with a lease of a little over fifty eight years remaining. Samuel informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert advice and secured satisfactory resolution informally and sell the flat.
Last Summer we were contacted by Mr and Mrs. N Bernard , who took over the lease of a purpose-built apartment in Brackley in June 2000. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable homes in Brackley with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 collected monthly. The lease came to a finish on 7 September 2095. Having 70 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.
Last month we were phoned by Mr F Martinez , who bought a one bedroom flat in Brackley in August 2007. We are asked if we could approximate the price would be for a ninety year lease extension. Identical residencies in Brackley with a long lease were in the region of £218,400. The mid-range amount of ground rent was £60 collected quarterly. The lease terminated in 2084. Having 59 years unexpired we calculated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 plus fees.