It’s a harsh certainty that a Bramhall 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 deflation being disguised by increases in the Bramhall property prices.Once your lease gets to 85ish years, you need to 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 below 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Bramhall will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Bramhall with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a freeholder in Bramhall,the lease extension lawyers 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 Bramhall valuers.
Nathaniel owned a studio flat in Bramhall being marketed with a lease of just over 61 years left. Nathaniel on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last Autumn we were contacted by Mr L Evans , who bought a purpose-built apartment in Bramhall in June 2007. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar flats in Bramhall with a long lease were worth £235,200. The average amount of ground rent was £45 invoiced monthly. The lease ran out on 22 January 2092. Taking into account 66 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.
In 2010 we were contacted by Mr F Dupont who, having took over the lease of a ground floor apartment in Bramhall in May 1998. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Bramhall with a long lease were worth £275,000. The mid-range ground rent payable was £55 collected monthly. The lease came to a finish in 2103. Considering the 77 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.