The market value of a leasehold property in Brading depends on how many years the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that formalities can be concluded ahead of the 80 year threshold. Leasehold Reform legislation enables Brading qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a landlord in Brading,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brading valuers.
Off the back of lengthy negotiations with the landlord of her garden apartment in Brading, Bethan initiated the lease extension process just as the lease was coming close to the critical 80-year threshold. The legal work completed in November 2006. The landlord’s fees were negotiated to under 700 GBP.
In 2011 we were approached by Mrs Victoria Thompson who, having acquired a first floor flat in Brading in May 2000. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable homes in Brading with a long lease were worth £280,000. The mid-range amount of ground rent was £45 collected per annum. The lease ended in 2095. Given that there were 70 years remaining we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2014 we were approached by Mr R Nelson who, having owned a first floor apartment in Brading in August 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Brading with a long lease were in the region of £223,400. The mid-range amount of ground rent was £60 collected yearly. The lease ran out in 2084. Given that there were 59 years outstanding we calculated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including professional charges.