The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Braunton can extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Braunton lease extension. Putting off the costs today simply increases the price you will eventually have to pay for a lease extension.
Leasehold properties in Braunton with in excess of 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 service 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Braunton,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 experience and the close ties they enjoy with Braunton valuers.
Liam owned a conversion apartment in Braunton being marketed with a lease of fraction over 72 years outstanding. Liam on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Liam to exercise his statutory right. Liam obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.
Mr Hugo Mercier owned a one bedroom flat in Braunton in August 1995. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparable flats in Braunton with 100 year plus lease were worth £206,200. The average amount of ground rent was £55 invoiced quarterly. The lease elapsed in 2081. Taking into account 56 years unexpired we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.
Last Summer we were contacted by Mr G Rivera , who moved into a garden apartment in Braunton in September 2006. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical residencies in Braunton with an extended lease were valued about £300,000. The average amount of ground rent was £50 billed per annum. The lease finished on 23 October 2101. Considering the 76 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.