For those whose Brantham property is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold premises in Brantham with in excess of 100 years outstanding 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Brantham leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the landlord of her two bedroom flat in Brantham, Amy initiated the lease extension process as the eighty year threshold was quickly advancing. The lease extension completed in March 2012. The freeholder’s costs were kept to an absolute minimum.
Last year we were e-mailed by Dr Alfie Bonnet , who bought a ground floor flat in Brantham in July 2010. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable properties in Brantham with 100 year plus lease were worth £191,000. The mid-range amount of ground rent was £65 collected annually. The lease lapsed on 28 September 2084. Given that there were 58 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 not including professional charges.
Last year we were e-mailed by Mr Harvey Howard , who moved into a purpose-built flat in Brantham in April 1996. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparable homes in Brantham with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected quarterly. The lease expiry date was on 27 September 2095. Having 69 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.