With a domestic leasehold premises in Braunton, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Residents in Braunton with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under eighty years remaining, under the relevant statute the landlord is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless 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 in-depth market knowledge and the close ties they enjoy with Braunton valuers.
Finn owned a studio apartment in Braunton being sold with a lease of a little over fifty eight years remaining. Finn informally approached his landlord being a well known Bristol-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 initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last Autumn we were called by Mr and Mrs. J Turner , who moved into a purpose-built flat in Braunton in March 2006. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative premises in Braunton with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out on 26 March 2096. Having 70 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.
In 2014 we were contacted by Dr Alexander Clarke who, having bought a purpose-built flat in Braunton in March 1999. We are asked if we could approximate the price would be to prolong the lease by 90 years. Identical properties in Braunton with 100 year plus lease were in the region of £223,400. The average amount of ground rent was £60 collected per annum. The lease lapsed on 28 November 2085. Given that there were 59 years as a residual term we calculated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus expenses.