It’s a harsh truth that a Branston 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 early years due to the loss of value being disguised by increases in the Branston property prices.Once your lease gets to 85ish years, you need to start thinking about 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 slips lower than eighty years - otherwise a higher premium will be payable. The majority of flat owners in Branston will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Lease extensions in Branston can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 in-depth market knowledge dealing with Branston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Kai, started to get near to the eighty-year mark with the lease on his first floor flat in Branston. Having purchased his home 18 years ago, the lease term was of little interest. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Kai was able to extend his lease just under the wire last May. Kai and the landlord eventually settled on the final figure of £6,000 . If he had missed the deadline, the price would have gone up by at least £975.
Dr P Bailey took over the lease of a ground floor apartment in Branston in April 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparable flats in Branston with 100 year plus lease were in the region of £168,800. The mid-range ground rent payable was £60 billed monthly. The lease finished on 19 June 2081. Considering the 55 years outstanding we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including legals.
In 2010 we were called by Mr Benjamin Stewart who, having bought a basement apartment in Branston in June 1995. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Branston with a long lease were worth £235,200. The mid-range ground rent payable was £45 invoiced quarterly. The lease elapsed on 25 July 2092. Taking into account 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.