Brading leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Brading residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Brading you would be well advised to investigate if your lease has between seventy and ninety years left. 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 actioned without delay
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Brading can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Brading lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley owned a 2 bedroom flat in Brading on the market with a lease of a few days over 61 years remaining. Riley informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Riley to exercise his statutory right. Riley obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. J Michel acquired a first floor apartment in Brading in January 2003. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparative flats in Brading with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 billed per annum. The lease ended in 2106. Having 80 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.
Last Autumn we were phoned by Ms A Flores , who bought a one bedroom apartment in Brading in August 2004. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative premises in Brading with a long lease were worth £280,000. The average amount of ground rent was £45 invoiced annually. The lease lapsed on 22 October 2096. Given that there were 70 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.