As the the remaining lease term of a Brantham domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner as opposed to later. Many flat owners in Brantham will qualify for this right; that being said a conveyancer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Brantham with in excess of 100 years unexpired on the lease are often regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with undertake Brantham 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.
Off the back of lengthy negotiations with the landlord of her garden flat in Brantham, Sophia initiated the lease extension process just as her lease was approaching the critical 80-year threshold. The legal work was finalised in February 2011. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. K Nguyen bought a one bedroom apartment in Brantham in January 1999. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparable flats in Brantham with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed yearly. The lease ran out on 19 January 2096. Having 70 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 not including expenses.
Last Winter we were contacted by Mr and Mrs. V Jones , who was assigned a lease of a purpose-built flat in Brantham in January 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparable properties in Brantham with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 collected monthly. The lease expired on 3 September 2076. Taking into account 50 years unexpired we calculated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus costs.