As the the remaining lease term of a Braunstone residential lease diminished so does its value and therefore the value of your property. Where the lease has, beyond 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Braunstone will qualify for this right; that being said a conveyancer should be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Braunstone with more than 100 years outstanding 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Braunstone 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 conveyancer we work with provide it.
Following protracted negotiations with the freeholder of her studio flat in Braunstone, Alice started the lease extension process just as the lease was coming close to the crucial eighty-year mark. The legal work completed in April 2005. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were phoned by Mr and Mrs. F Green , who bought a studio apartment in Braunstone in March 2012. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Braunstone with 100 year plus lease were valued around £265,000. The mid-range ground rent payable was £55 billed monthly. The lease concluded in 2099. Considering the 74 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
Mr and Mrs. O Bonnet was assigned a lease of a recently refurbished flat in Braunstone in March 2001. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparative homes in Braunstone with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease end date was in 2079. Having 54 years left we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.