It’s a harsh certainty that a Braunton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Braunton property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. Most leasehold owners in Braunton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Braunton with over 100 years unexpired 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Braunton can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 procuring Braunton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Felix, came critically close to the 80-year mark with the lease on his leasehold apartment in Braunton. Having bought his home 19 years previously, the length of the lease was of no relevance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Felix extended the lease at the eleventh hour last January. Felix and the freeholder via the managing agents subsequently agreed on a premium of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £925.
Last Autumn we were contacted by Mr and Mrs. Y Roberts , who was assigned a lease of a newly refurbished apartment in Braunton in November 2005. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar premises in Braunton with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ran out on 15 October 2103. Considering the 77 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.
Last month we were contacted by Ms Holly Lee , who bought a studio apartment in Braunton in August 2003. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative properties in Braunton with 100 year plus lease were valued about £260,200. The average ground rent payable was £65 invoiced annually. The lease expiry date was in 2092. Given that there were 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus professional charges.