There is no doubt about it a leasehold flat or house in Braunton is a wasting asset as a result of the shortening lease. If the residual term has, more than 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Braunton will qualify for this right; nevertheless a lawyer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Braunton can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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.
Kai was the the leasehold proprietor of a conversion apartment in Braunton being marketed with a lease of a few days over fifty eight years unexpired. Kai on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2011 we were called by Mr and Mrs. O Patel who, having moved into a newly refurbished flat in Braunton in September 2011. The question was if we could approximate the price would be to prolong the lease by 90 years. Comparable premises in Braunton with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced yearly. The lease terminated on 10 July 2093. Considering the 68 years outstanding we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
Last month we were called by Dr C Richardson , who took over the lease of a one bedroom flat in Braunton in October 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparable residencies in Braunton with an extended lease were valued about £208,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ended on 15 August 2082. Taking into account 57 years unexpired we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including professional charges.