The re-sale value of a leasehold property in Braintree is impacted by how long the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed ahead of the 80 year mark. Leasehold Reform legislation enables Braintree qualifying lessees to an additional term of ninety years in addition to the existing term, at a peppercorn rent (no ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Coventry Building Society | 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Braintree can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Braintree lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jude was the the leasehold proprietor of a high value flat in Braintree on the market with a lease of fraction over 72 years outstanding. Jude informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jude to invoke his statutory right. Jude procured expert advice and secured an acceptable deal without resorting to tribunal and sell the flat.
Mr and Mrs. T Evans purchased a garden flat in Braintree in March 2007. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical properties in Braintree with a long lease were worth £218,000. The mid-range amount of ground rent was £45 collected annually. The lease lapsed on 2 May 2089. Having 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of legals.
Last Summer we were approach by Mr and Mrs. G Morel , who acquired a ground floor apartment in Braintree in November 2004. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparative premises in Braintree with a long lease were worth £270,000. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed in 2100. Given that there were 74 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.