Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Bramford. Inevitably, the period of lease left reduces over time. This is often overlooked and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Bramford have the right to extend the lease for a further 90 years under Leasehold Reform legislation. You should give careful deliberation before putting off your Bramford lease extension. Holding off that expense now likely increases the price you will eventually have to pay to extend your lease
Leasehold properties in Bramford with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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: • 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 • The value of the property subject to the short remaining term is £500,000 or more AND • 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Bramford valuers.
After unsuccessful negotiations with the freeholder of her garden flat in Bramford, Daisy commenced the lease extension process as the 80 year mark was swiftly approaching. The lease extension completed in July 2015. The landlord’s charges were negotiated to under 550 GBP.
In 2011 we were phoned by Dr W Scott who, having bought a ground floor apartment in Bramford in July 2012. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical flats in Bramford with 100 year plus lease were in the region of £235,200. The average ground rent payable was £45 collected per annum. The lease ran out on 5 March 2091. Having 66 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.
In 2009 we were contacted by Mr and Mrs. H Evans who, having bought a newly refurbished apartment in Bramford in October 2009. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Identical properties in Bramford with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out on 22 March 2102. Given that there were 77 years outstanding we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.