With a residential leasehold premises in Brandon, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Residents in Brandon with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has below eighty years left, under the relevant Act the freeholder can calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Brandon with in excess of 100 years left on the lease are often referred to as ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Brandon,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brandon valuers.
During the course of the last few months Jason, came very close to the eighty-year mark with the lease on his studio flat in Brandon. Having purchased his property twenty years previously, the lease term was of no significance. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Jason was able to extend his lease just under the wire last July. Jason and the freeholder via the managing agents ultimately settled on sum of £5,500 . If the lease had slid below 80 years, the price would have gone up by a minimum £1,050.
Mr and Mrs. U Dupont completed a one bedroom flat in Brandon in November 2011. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical premises in Brandon with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 billed monthly. The lease lapsed in 2096. Taking into account 70 years as a residual term we approximated the premium to the landlord for the lease extension to be within £10,500 and £12,000 not including legals.
Mr F Sharif owned a basement apartment in Brandon in June 2009. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Brandon with a long lease were worth £246,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease ended on 6 January 2076. Given that there were 50 years outstanding we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of professional charges.