Bramhall leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Bramhall will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Bramhall with in excess of one hundred years left 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 reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a landlord in Bramhall,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bramhall valuers.
After unsuccessful correspondence with the freeholder of her ground floor flat in Bramhall, Victoria initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The transaction completed in September 2013. The freeholder’s costs were kept to an absolute minimum.
Mr U Stewart moved into a one bedroom apartment in Bramhall in February 2012. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical properties in Bramhall with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed monthly. The lease ran out in 2097. Taking into account 71 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Dr D Collins took over the lease of a studio flat in Bramhall in October 2010. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable premises in Bramhall with a long lease were worth £254,200. The average ground rent payable was £60 collected annually. The lease ran out on 18 September 2077. Given that there were 51 years remaining we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of costs.