The closer a residential lease in Braintree nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. Many flat owners in Braintree will qualify for this right; that being said a conveyancer should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Braintree with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Braintree leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Daniel, came perilously close to the eighty-year mark with the lease on his studio apartment in Braintree. In buying his flat 19 years previously, the length of the lease was of little relevance. As luck would have it, he became aware that he would soon be paying an inflated amount for Extending the lease. Daniel extended the lease just under the wire last May. Daniel and the landlord in the end settled on an amount of £5,500 . If he not met the deadline, the premium would have escalated by at least £900.
Last Spring we were called by Mr D Fournier , who was assigned a lease of a basement apartment in Braintree in April 2012. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Braintree with a long lease were valued around £183,600. The average amount of ground rent was £65 billed every twelve months. The lease elapsed in 2082. Taking into account 57 years remaining we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.
In 2010 we were called by Dr Rachel Green who, having completed a one bedroom flat in Braintree in October 2006. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar premises in Braintree with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ended on 10 February 2093. Having 68 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.