The market value of a leasehold property in Bradmore is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension 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 all matters can be addressed prior to the eighty year threshold. Current legislation enables Bradmore qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Bradmore with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Bradmore lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing unsuccessful negotiations with the freeholder of her studio apartment in Bradmore, Charlotte initiated the lease extension process as the 80 year mark was swiftly approaching. The lease extension was concluded in November 2011. The landlord’s costs were kept to an absolute minimum.
Mr Jack Wilson acquired a one bedroom flat in Bradmore in October 2003. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable residencies in Bradmore with a long lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced annually. The lease ended in 2081. Given that there were 55 years left we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of fees.
Dr P James completed a first floor flat in Bradmore in February 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative residencies in Bradmore with a long lease were valued about £300,000. The average ground rent payable was £50 billed monthly. The lease lapsed in 2101. Considering the 75 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.