Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Branston. Clearly, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Branston have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give due consideration before putting off your Branston lease extension. Putting off the cost now only increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Branston with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Engaging our service will provide you enhanced control over the value of your Branston leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Blake was the the leasehold proprietor of a conversion apartment in Branston being sold with a lease of a little over 59 years left. Blake on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Blake to exercise his statutory right. Blake procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Ms Daisy Vincent owned a purpose-built flat in Branston in June 2011. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Branston with a long lease were valued about £260,000. The average amount of ground rent was £50 collected annually. The lease concluded in 2098. Given that there were 72 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.
In 2014 we were approached by Mr and Mrs. A Cox who, having purchased a studio flat in Branston in January 2005. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable properties in Branston with a long lease were worth £256,600. The average amount of ground rent was £60 invoiced quarterly. The lease concluded on 25 June 2078. Considering the 52 years unexpired we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of fees.