Braunstone leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease drops lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Braunstone will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Braunstone with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Braunstone,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Braunstone valuers.
Gabriel owned a conversion apartment in Braunstone on the market with a lease of just over 72 years outstanding. Gabriel informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Last year we were phoned by Dr P Alexander , who bought a ground floor apartment in Braunstone in October 2001. The question was if we could estimate the price could be to extend the lease by ninety years. Comparable properties in Braunstone with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed annually. The lease concluded in 2097. Having 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
In 2010 we were called by Mr and Mrs. B Morris who, having acquired a newly refurbished apartment in Braunstone in February 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Braunstone with an extended lease were valued around £254,200. The mid-range amount of ground rent was £60 billed annually. The lease end date was in 2077. Considering the 51 years remaining we approximated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus professional charges.