With a residential leasehold property in Branston, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than eighty years remaining. Anyone in Branston with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has under 80 years remaining, under the current Act the freeholder can calculate and charge a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Nationwide Building Society |
The conveyancers that we work with procure Branston 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 lawyer we work with provide it.
Jude owned a studio flat in Branston on the market with a lease of a few days over 59 years left. Jude informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last May we were contacted by Mrs Charlotte Robinson , who moved into a garden apartment in Branston in April 2011. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Similar residencies in Branston with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish on 3 May 2077. Considering the 51 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of professional charges.
In 2010 we were phoned by Mr and Mrs. J Rose who, having acquired a one bedroom flat in Branston in March 2008. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Branston with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected yearly. The lease concluded on 3 November 2088. Given that there were 62 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.