With a residential leasehold premises in Brentwood, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years left. Residents in Brentwood with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once the lease term has fewer than eighty years remaining, under the relevant Act the freeholder can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Brentwood with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Brentwood leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
David owned a studio apartment in Brentwood being sold with a lease of a few days over fifty eight years unexpired. David on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were David to exercise his statutory right. David procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
In 2014 we were phoned by Mrs Mollie Davies who, having took over the lease of a garden flat in Brentwood in October 2011. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Identical properties in Brentwood with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 billed monthly. The lease expired in 2096. Considering the 70 years unexpired we estimated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 exclusive of fees.
An example of a Lease Extension decision for a Brentwood residence is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case affected 1 flat. The number of years remaining on the existing lease(s) was 57.5 years.