Unfortunately that a Brentwood residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Brentwood property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term falls under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Brentwood will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with handle Brentwood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of lengthy discussions with the freeholder of her purpose-built flat in Brentwood, Maisie initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The transaction completed in March 2010. The landlord’s costs were negotiated to a tad over 600 GBP.
Last year we were called by Mr and Mrs. U André , who bought a studio apartment in Brentwood in March 2012. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative premises in Brentwood with an extended lease were valued around £208,200. The mid-range amount of ground rent was £65 billed annually. The lease came to a finish on 22 October 2086. Given that there were 61 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus costs.
An example of a Lease Extension decision for a Brentwood property 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 unexpired residue of the current lease was 57.5 years.