Unfortunately that a Brackley residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Brackley property market.Once your lease nears 85ish years, you need to 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 falls under eighty years - otherwise a higher premium will be payable. Most flat owners in Brackley will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Brackley with more than one hundred years unexpired 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 home. In such situations there is often little to be gained by buying the freehold 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Brackley leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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.
Following lengthy discussions with the landlord of her studio apartment in Brackley, Rachael started the lease extension process as the eighty year mark was quickly nearing. The legal work was concluded in May 2015. The freeholder’s fees were negotiated to slightly above 700 GBP.
Last Summer we were contacted by Dr Luca Ali , who owned a ground floor flat in Brackley in October 1995. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Comparative flats in Brackley with 100 year plus lease were in the region of £216,000. The average amount of ground rent was £60 invoiced every twelve months. The lease end date was in 2083. Given that there were 58 years outstanding we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.
In 2014 we were contacted by Dr A Collins who, having acquired a one bedroom apartment in Brackley in November 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable properties in Brackley with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished in 2103. Given that there were 78 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.