On the balance of probabilities where you own a flat in Brentwood you actually own a long leasehold interest over your property
Leasehold residencies in Brentwood with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Brentwood,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brentwood valuers.
In 2014 Kian, started to get close to the 80-year threshold with the lease on his studio apartment in Brentwood. Having purchased his property two decades ago, the unexpired term was of no significance. Luckily, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Kian arranged for a lease extension at the eleventh hour last July. Kian and the freeholder ultimately agreed on the final figure of £5,000 . If the lease had dipped below 80 years, the price would have become more exhorbitant by at least £1,100.
Last Winter we were approach by Ms Phoebe Green , who moved into a ground floor flat in Brentwood in July 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Brentwood with an extended lease were worth £235,200. The average amount of ground rent was £45 billed annually. The lease finished on 19 April 2091. Given that there were 66 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
An example of a Lease Extension case for a Brentwood premises 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 was in relation to 1 flat. The unexpired lease term was 57.5 years.