Braunton leases on domestic deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher premium will be due. Flat owners in Braunton will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Lease extensions in Braunton can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in this area.
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 Braunton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the freeholder of her one bedroom apartment in Braunton, Madeleine initiated the lease extension process as the 80 year threshold was swiftly approaching. The transaction completed in April 2013. The landlord’s costs were negotiated to under 450 GBP.
In 2014 we were phoned by Mr and Mrs. M Sánchez who, having was assigned a lease of a one bedroom apartment in Braunton in February 2002. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar properties in Braunton with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed every twelve months. The lease came to a finish on 5 August 2101. Taking into account 75 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
Mr and Mrs. T Young was assigned a lease of a recently refurbished flat in Braunton in March 2011. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparable premises in Braunton with a long lease were in the region of £250,400. The average ground rent payable was £65 collected per annum. The lease ended on 5 March 2090. Given that there were 64 years remaining we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus professional charges.