It’s a harsh certainty that a Bramley residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Bramley property market.Once your lease nears 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 falls lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Bramley will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Bramley can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Bramley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Toby, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Bramley. In buying his home two decades ago, the unexpired term was of little importance. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Toby extended the lease at the eleventh hour last June. Toby and the freeholder subsequently settled on an amount of £5,000 . If the lease had descended to less than eighty years, the amount would have increased by at least £925.
In 2010 we were called by Dr Sebastian Murphy who, having took over the lease of a newly refurbished apartment in Bramley in June 2009. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical properties in Bramley with an extended lease were valued about £285,000. The mid-range ground rent payable was £55 billed every twelve months. The lease expired in 2104. Given that there were 79 years remaining we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.
Mr W Laurent moved into a ground floor flat in Bramley in April 2003. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical properties in Bramley with 100 year plus lease were worth £193,400. The average ground rent payable was £65 invoiced per annum. The lease ended on 26 November 2084. Having 59 years unexpired we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.