Bracknell leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Bracknell will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some cases you may not qualify. There are also strict deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | 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. |
Regardless of whether you are a tenant or a landlord in Bracknell,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bracknell valuers.
Trailing unsuccessful negotiations with the freeholder of her two bedroom flat in Bracknell, Ellie commenced the lease extension process just as her lease was approaching the critical 80-year mark. The legal work was finalised in November 2014. The landlord’s charges were kept to an absolute minimum.
Last Winter we were phoned by Mr F Leroy , who bought a newly refurbished flat in Bracknell in September 1997. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Bracknell with a long lease were valued about £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired in 2106. Considering the 80 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Last month we were e-mailed by Ms Samantha Allen , who moved into a garden apartment in Bracknell in April 2005. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar flats in Bracknell with a long lease were worth £280,000. The mid-range amount of ground rent was £45 billed annually. The lease elapsed in 2095. Taking into account 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.