Branston residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Branston can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 Branston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jason was the the leasehold proprietor of a conversion flat in Branston on the market with a lease of a few days over sixty years remaining. Jason on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jason to exercise his statutory right. Jason obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Mr and Mrs. W Ramírez took over the lease of a basement apartment in Branston in February 1998. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical properties in Branston with an extended lease were worth £210,600. The mid-range ground rent payable was £45 collected per annum. The lease terminated on 2 September 2087. Taking into account 62 years unexpired we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus fees.
In 2013 we were called by Dr Joshua Garcia who, having acquired a ground floor flat in Branston in April 2002. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar residencies in Branston with an extended lease were in the region of £265,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out on 7 September 2098. Taking into account 73 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.