Main reasons to commence your Braintree lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/braintree">Braintree</a> leasehold property depreciates with the years remaining on the lease.
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<p> Chances are that if you own a flat in Braintree you actually own a long leasehold interest over your property
<h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is generally accepted that a property with over 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.
<h4>Mortgage lenders may not grant a mortgage with a short lease</h4>
The trend since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.
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<th> Requirement
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:<br /><br />• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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<td>Godiva Mortgages</td>
<td> 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.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<td>Yorkshire Building Society</td>
<td> 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.
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What makes us experts in Braintree lease extensions?
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The lawyers that we work with handle Braintree 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.
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Braintree Lease Extension Example Cases:
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<h5> Millie, Braintree, Essex,</h5>
<p> Trailing lengthy correspondence with the landlord of her garden apartment in Braintree, Millie initiated the lease extension process as the eighty year threshold was swiftly advancing. The lease extension completed in July 2005. The landlord’s charges were kept to an absolute minimum.
<h5>Braintree case:</h5>
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In 2011 we were phoned by Mrs Katherine Brown who, having was assigned a lease of a one bedroom flat in Braintree in February 2003. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar premises in Braintree with 100 year plus lease were in the region of £245,000. The average ground rent payable was £50 billed quarterly. The lease ended on 23 August 2094. Considering the 68 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
<h5>Braintree case:</h5>
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In 2011 we were contacted by Ms Ellen Campbell who, having owned a first floor flat in Braintree in June 1997. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Braintree with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 invoiced monthly. The lease terminated in 2105. Taking into account 79 years outstanding we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
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