Braintree leases on residential deteriorating in value. if your lease has about ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Braintree will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some circumstances you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than one hundred 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 equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Braintree,the lease extension lawyers 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 Braintree valuers.
Austin owned a conversion flat in Braintree on the market with a lease of a few days over 72 years left. Austin informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Austin to invoke his statutory right. Austin procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2013 we were phoned by Dr U Rose who, having completed a garden apartment in Braintree in March 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Braintree with a long lease were valued around £200,800. The mid-range amount of ground rent was £65 billed monthly. The lease came to a finish in 2086. Having 60 years outstanding we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including expenses.
Last year we were phoned by Mr Lewis Carter , who moved into a one bedroom flat in Braintree in August 2005. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Braintree with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed annually. The lease expiry date was on 23 October 2097. Taking into account 71 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.