The value of Brampton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is less than eighty years
Leasehold residencies in Brampton with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Brampton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Milo was the the leasehold owner of a conversion apartment in Brampton being sold with a lease of a little over fifty eight years unexpired. Milo informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Milo to exercise his statutory right. Milo obtained expert advice and secured an acceptable resolution informally and sell the flat.
Last Autumn we were approach by Dr N Miller , who purchased a garden flat in Brampton in June 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Brampton with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced annually. The lease ran out in 2083. Given that there were 58 years left we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.
Mr D Walker was assigned a lease of a basement flat in Brampton in November 2007. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable flats in Brampton with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 collected every twelve months. The lease ran out in 2103. Given that there were 78 years unexpired we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.