The only way is down when it comes to Bredon lease terms. Bredon leaseholds that have a lease term lower than 80 years will drop in market price even faster, and the cost of extending your lease will go up.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Using our service gives you enhanced control over the value of your Bredon leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Freddie owned a conversion flat in Bredon on the market with a lease of a little over sixty years remaining. Freddie informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Freddie to invoke his statutory right. Freddie procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Mr and Mrs. G Morel acquired a studio flat in Bredon in January 2011. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative properties in Bredon with a long lease were worth £171,800. The average amount of ground rent was £55 invoiced monthly. The lease finished on 1 October 2076. Having 50 years remaining we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus professional charges.
Mr and Mrs. J Evans owned a first floor apartment in Bredon in February 2003. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar flats in Bredon with a long lease were in the region of £280,000. The average amount of ground rent was £45 invoiced per annum. The lease came to a finish on 5 July 2096. Considering the 70 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.