With a domestic leasehold premises in Bramford, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Residents in Bramford with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has less than eighty years outstanding, under the relevant legislation the landlord can calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Bramford with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Bramford,the lease extension experts 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 Bramford valuers.
David owned a high value flat in Bramford on the market with a lease of a little over sixty years remaining. David on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were David to invoke his statutory right. David obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2009 we were e-mailed by Dr L Hill who, having owned a purpose-built apartment in Bramford in April 2000. We are asked if we could estimate the price would be to prolong the lease by 90 years. Similar homes in Bramford with a long lease were in the region of £208,200. The average amount of ground rent was £65 collected annually. The lease termination date was in 2087. Given that there were 61 years outstanding we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including fees.
Dr K Ali took over the lease of a studio apartment in Bramford in March 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparable premises in Bramford with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 invoiced every twelve months. The lease came to a finish in 2098. Given that there were 72 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.