Brading 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 the lease becomes more expensive. It is the case that most Brading tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Brading you must check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Brading leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Brading with over 100 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 purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Retaining our service gives you increased control over the value of your Brading leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish 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.
Milo was the the leasehold proprietor of a studio flat in Brading on the market with a lease of a little over 59 years outstanding. Milo on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2012 we were called by Mr and Mrs. G Jones who, having completed a first floor flat in Brading in March 2004. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical properties in Brading with 100 year plus lease were valued around £206,200. The average ground rent payable was £60 invoiced per annum. The lease lapsed on 13 March 2082. Given that there were 56 years left we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.
Last Winter we were approach by Mr and Mrs. P Ramírez , who completed a first floor apartment in Brading in November 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Brading with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 billed per annum. The lease end date was in 2102. Having 76 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.