Chances are that where you own a flat in Brampton you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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. |
Engaging our service gives you enhanced control over the value of your Brampton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Arthur owned a studio flat in Brampton on the market with a lease of just over sixty years left. Arthur informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Arthur to exercise his statutory right. Arthur procured expert advice and secured satisfactory deal informally and sell the flat.
Last year we were contacted by Dr L Carter , who completed a one bedroom apartment in Brampton in October 2012. The question was if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Brampton with 100 year plus lease were valued about £206,200. The mid-range ground rent payable was £60 collected per annum. The lease ended on 20 November 2082. Considering the 56 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.
Last Autumn we were e-mailed by Mr Eliot Alexander , who acquired a one bedroom apartment in Brampton in June 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Brampton with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded on 25 June 2102. Given that there were 76 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.