The nearer a domestic lease in Brandesburton gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond one hundred years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Brandesburton will qualify for this right; that being said a lawyer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Brandesburton with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
The conveyancers that we work with procure 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.
After unsuccessful negotiations with the freeholder of her basement apartment in Brandesburton, Jordan commenced the lease extension process as the 80 year deadline was quickly nearing. The legal work completed in March 2005. The freeholder’s costs were restricted to below four hundred GBP.
Last Winter we were e-mailed by Mrs Louise Roux , who took over the lease of a one bedroom apartment in Brandesburton in February 2007. The question was if we could estimate the premium could be for a 90 year extension to my lease. Similar properties in Brandesburton with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 collected yearly. The lease came to a finish in 2105. Having 80 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
In 2010 we were called by Mr and Mrs. U Green who, having purchased a one bedroom apartment in Brandesburton in May 2001. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Brandesburton with a long lease were valued about £275,000. The average amount of ground rent was £45 billed annually. The lease ran out on 8 June 2094. Taking into account 69 years left we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.