Branston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Branston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Branston you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Branston with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancer we work with provide it.
After lengthy negotiations with the freeholder of her ground floor flat in Branston, Jodie started the lease extension process just as her lease was approaching the all-important 80-year threshold. The transaction completed in October 2014. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. U Ramírez , who moved into a one bedroom apartment in Branston in September 1999. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical premises in Branston with 100 year plus lease were in the region of £264,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease concluded in 2079. Taking into account 53 years left we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of expenses.
In 2013 we were e-mailed by Mr James Clarke who, having took over the lease of a one bedroom flat in Branston in June 2003. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical properties in Branston with 100 year plus lease were in the region of £220,400. The mid-range ground rent payable was £45 billed per annum. The lease ended on 10 April 2090. Considering the 64 years outstanding we approximated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 not including costs.