With a long leasehold property in Braunstone, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Residents in Braunstone with a lease nearing 81 years left should seriously think of extending it without delay. When a lease has below 80 years outstanding, under the current statute the freeholder is entitled to calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Braunstone with in excess of one hundred 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| 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. |
Lease extensions in Braunstone can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Braunstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn was the the leasehold proprietor of a 2 bedroom flat in Braunstone on the market with a lease of a little over 72 years remaining. Finn on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Finn to invoke his statutory right. Finn procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2010 we were called by Dr M Cox who, having bought a garden apartment in Braunstone in May 1999. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative premises in Braunstone with an extended lease were valued around £173,800. The average amount of ground rent was £60 invoiced per annum. The lease end date was on 16 September 2080. Taking into account 55 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.
In 2012 we were e-mailed by Dr Emma Brooks who, having bought a ground floor apartment in Braunstone in November 1999. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical homes in Braunstone with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced annually. The lease end date was in 2091. Having 66 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.