Unfortunately that a Brandon residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Brandon property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. The majority of flat owners in Brandon will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Brandon with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service will provide you increased control over the value of your Brandon leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her one bedroom flat in Brandon, Jessica initiated the lease extension process just as her lease was nearing the critical eighty-year threshold. The legal work completed in January 2014. The freeholder’s fees were restricted to less than 650 GBP.
Last Christmas we were approach by Mr A Laurent , who took over the lease of a garden apartment in Brandon in June 2004. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparable flats in Brandon with an extended lease were in the region of £290,000. The average amount of ground rent was £60 billed per annum. The lease ended in 2105. Given that there were 80 years remaining we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.
Dr Harriet Bell purchased a recently refurbished flat in Brandon in January 1997. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical residencies in Brandon with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed in 2085. Taking into account 60 years remaining we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of professional charges.