Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Brackley. Clearly, the term of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Brackley have the right to extend the lease for an additional ninety years in accordance with legislation. Do give careful deliberation before putting off your Brackley lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold residencies in Brackley with more than 100 years outstanding on the lease are often referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Brackley leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the landlord of her leasehold apartment in Brackley, Aimee initiated the lease extension process as the eighty year deadline was quickly advancing. The transaction was finalised in March 2007. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were phoned by Mr and Mrs. R Peterson who, having acquired a purpose-built flat in Brackley in January 2010. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Identical premises in Brackley with 100 year plus lease were valued around £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease finished on 3 May 2102. Taking into account 77 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
Last Winter we were called by Dr Eliot Turner , who took over the lease of a studio apartment in Brackley in August 2011. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative homes in Brackley with an extended lease were valued about £260,200. The average ground rent payable was £65 invoiced yearly. The lease ended in 2091. Taking into account 66 years remaining we estimated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 plus professional charges.