With a residential leasehold premises in Braintree, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Residents in Braintree with a lease nearing 81 years left should seriously think of extending it without delay. Once a lease has fewer than eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Braintree with over one hundred years remaining 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 reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Leeds Building Society | |
| Santander | |
| Skipton Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Braintree,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Braintree valuers.
Jayden was the the leasehold proprietor of a studio flat in Braintree on the market with a lease of fraction over sixty years unexpired. Jayden on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jayden to invoke his statutory right. Jayden procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were approach by Dr F Roux , who acquired a ground floor flat in Braintree in October 1997. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Braintree with a long lease were valued around £254,200. The average amount of ground rent was £60 billed monthly. The lease finished on 28 October 2077. Taking into account 51 years outstanding we estimated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus expenses.
Last Autumn we were e-mailed by Ms Katherine Patel , who owned a newly refurbished flat in Braintree in August 2006. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Braintree with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease lapsed in 2088. Having 62 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of costs.