For anyone whose Bradwell property is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Bradwell 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 conveyancer we work with provide it.
Jasper was the the leasehold proprietor of a high value apartment in Bradwell on the market with a lease of a little over fifty eight years unexpired. Jasper on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2010 we were contacted by Mrs Hollie Taylor who, having owned a recently refurbished flat in Bradwell in June 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar properties in Bradwell with an extended lease were worth £191,400. The average ground rent payable was £55 collected annually. The lease finished on 7 May 2079. Taking into account 54 years outstanding we calculated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of professional charges.
In 2010 we were approached by Mrs Isobel Martínez who, having bought a purpose-built apartment in Bradwell in May 2010. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Bradwell with 100 year plus lease were valued around £295,000. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish on 25 August 2099. Taking into account 74 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.