With a residential leasehold premises in Brandesburton, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Brandesburton with a lease drawing near to 81 years left should seriously consider extending it sooner as opposed to later. Once a lease has below 80 years remaining, under the relevant Act the freeholder is entitled to calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service gives you enhanced control over the value of your Brandesburton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the landlord of her ground floor flat in Brandesburton, Millie started the lease extension process as the 80 year deadline was rapidly nearing. The lease extension completed in April 2013. The landlord’s charges were kept to an absolute minimum.
Last Winter we were phoned by Ms Poppy Bell , who acquired a studio flat in Brandesburton in January 2000. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable homes in Brandesburton with a long lease were in the region of £206,200. The average ground rent payable was £55 billed yearly. The lease termination date was in 2081. Given that there were 56 years as a residual term we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
In 2009 we were e-mailed by Mr Harvey Sharif who, having took over the lease of a purpose-built flat in Brandesburton in July 2005. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical premises in Brandesburton with an extended lease were valued about £300,000. The average amount of ground rent was £50 collected every twelve months. The lease concluded in 2101. Given that there were 76 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.