The market value of a leasehold property in Brantham is impacted by how long the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that formalities can be addressed in advance of the eighty year threshold. Statute enables Brantham qualifying lessees to an additional term of 90 years in addition to the remaining term, at a nominal rent (no ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Brantham with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The lawyers 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 conveyancing solicitor we work with provide it.
In 2014 John, started to get near to the 80-year mark with the lease on his two bedroom flat in Brantham. Having bought his home two decades ago, the unexpired term was of no significance. by good luck, he noticed he needed to take steps soon on Extending the lease. John extended the lease at the eleventh hour in May. John and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he had missed the deadline, the sum would have gone up by at least £875.
In 2013 we were contacted by Dr Grace Thomas who, having moved into a purpose-built flat in Brantham in November 2005. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative flats in Brantham with 100 year plus lease were valued about £254,200. The mid-range amount of ground rent was £60 collected quarterly. The lease end date was in 2076. Considering the 51 years outstanding we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus professional charges.
Mr and Mrs. N Sánchez acquired a purpose-built flat in Brantham in September 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Brantham with a long lease were valued around £210,600. The mid-range ground rent payable was £45 invoiced yearly. The lease termination date was on 11 November 2087. Taking into account 62 years remaining we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.