Chances are that where you own a flat in Bredon you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Bredon can be a difficult process. We recommend you get guidance from a lawyer 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 a wealth of experience dealing with Bredon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kian was the the leasehold proprietor of a high value flat in Bredon being sold with a lease of a little over 59 years unexpired. Kian on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant 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 doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Kian to invoke his statutory right. Kian obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2011 we were phoned by Mr and Mrs. K Norbert who, having moved into a basement apartment in Bredon in June 1997. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar residencies in Bredon with an extended lease were worth £198,800. The mid-range ground rent payable was £55 collected yearly. The lease elapsed in 2081. Taking into account 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of costs.
Ms U Peterson owned a one bedroom apartment in Bredon in July 1997. The question was if we could estimate the price could be to extend the lease by ninety years. Comparative properties in Bredon with an extended lease were worth £300,000. The average amount of ground rent was £50 collected every twelve months. The lease elapsed in 2101. Considering the 75 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.