As the length of the unexpired term of a Bradwell residential lease decreases so does its value and therefore the value of your property. Where the lease has, over 125 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner than later. Many flat owners in Bradwell will meet the qualifying criteria; that being said a lawyer should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent 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 |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire 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. |
The lawyers 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.
Trailing lengthy negotiations with the freeholder of her ground floor apartment in Bradwell, Catherine commenced the lease extension process as the 80 year threshold was fast nearing. The transaction was finalised in July 2008. The freeholder’s costs were restricted to a tad over 550 GBP.
In 2013 we were e-mailed by Dr Bethany Mason who, having was assigned a lease of a first floor flat in Bradwell in May 1997. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Comparable residencies in Bradwell with an extended lease were valued about £290,000. The average amount of ground rent was £45 collected yearly. The lease ended on 10 April 2098. Taking into account 73 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Mr and Mrs. H Walker moved into a ground floor apartment in Bradwell in May 2012. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative premises in Bradwell with 100 year plus lease were worth £240,600. The mid-range amount of ground rent was £60 collected yearly. The lease expiry date was on 14 September 2087. Having 62 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.