Unfortunately that a Bramford residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Bramford property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. Most leasehold owners in Bramford will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Bramford 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 conveyancer we work with provide it.
Harry was the the leasehold proprietor of a high value flat in Bramford on the market with a lease of fraction over fifty eight years unexpired. Harry informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Harry to invoke his statutory right. Harry obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2013 we were called by Mr Y Phillips who, having moved into a ground floor flat in Bramford in May 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Bramford with an extended lease were valued about £280,000. The mid-range ground rent payable was £55 billed monthly. The lease end date was on 23 October 2103. Having 78 years unexpired we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.
In 2009 we were contacted by Mr and Mrs. P Peterson who, having completed a basement flat in Bramford in June 2007. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative residencies in Bramford with an extended lease were valued around £191,000. The average ground rent payable was £65 billed annually. The lease ended on 23 October 2083. Given that there were 58 years left we calculated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 plus expenses.