Why you should start your Brandesburton lease extension

Why you should commence your Brandesburton lease extension today:

A Brandesburton lease depreciates with the years remaining on the lease.

Chances are that where you own a flat in Brandesburton you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for decades to come.

Banks and Building Societies may decide not to loan monies with a short lease

The trend since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Brandesburton lease extension solicitors or enfranchisement solicitors

The lawyers that we work with handle Brandesburton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Brandesburton Lease Extension Case Summaries:

Luca, Brandesburton, East Yorkshire,

Luca was the the leasehold owner of a 2 bedroom apartment in Brandesburton on the market with a lease of fraction over 61 years left. Luca on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Luca to invoke his statutory right. Luca procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.

Brandesburton case:

In 2010 we were contacted by Dr Jamie Martin who, having owned a studio apartment in Brandesburton in October 2006. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical homes in Brandesburton with an extended lease were valued about £243,000. The average ground rent payable was £65 collected per annum. The lease terminated in 2089. Considering the 63 years left we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including professional charges.

Brandesburton case:

In 2012 we were approached by Ms Isabelle André who, having purchased a first floor apartment in Brandesburton in July 2012. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Identical premises in Brandesburton with a long lease were worth £181,600. The average amount of ground rent was £55 collected annually. The lease ended on 6 September 2078. Taking into account 52 years outstanding we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.