Brandon leases on residential deteriorating in value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Brandon will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Brandon with more than 100 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Brandon can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Brandon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Joseph, came dangerously near to the eighty-year mark with the lease on his ground floor apartment in Brandon. In buying his flat two decades ago, the length of the lease was of little relevance. Thankfully, he noticed he needed to take steps soon on a lease extension. Joseph extended the lease just under the wire in March. Joseph and the freeholder in the end agreed on an amount of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £1,150.
In 2010 we were e-mailed by Ms Y Lambert who, having completed a one bedroom flat in Brandon in July 1999. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical residencies in Brandon with an extended lease were valued around £265,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease came to a finish in 2098. Taking into account 73 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Mr and Mrs. H Nguyen moved into a studio apartment in Brandon in November 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Brandon with an extended lease were valued about £264,000. The average amount of ground rent was £60 collected every twelve months. The lease terminated on 27 March 2078. Having 53 years remaining we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including professional charges.