When it comes to residential leasehold premises in Brewood, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Anyone in Brewood with a lease nearing 81 years left should seriously consider extending it sooner than later. Once the lease term has under eighty years outstanding, under the current statute the freeholder is entitled to calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Brewood with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a landlord in Brewood,the lease extension experts 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 Brewood valuers.
After lengthy correspondence with the freeholder of her purpose-built apartment in Brewood, Freya initiated the lease extension process as the eighty year mark was swiftly nearing. The lease extension was concluded in October 2013. The freeholder’s costs were kept to an absolute minimum.
Mrs Rebecca Dupont moved into a first floor flat in Brewood in November 2009. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Similar premises in Brewood with an extended lease were valued about £285,000. The average ground rent payable was £45 collected every twelve months. The lease end date was in 2097. Given that there were 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.
Mr and Mrs. O Murphy completed a one bedroom apartment in Brewood in March 1998. The question was 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. Comparable homes in Brewood with a long lease were in the region of £230,800. The mid-range ground rent payable was £60 collected per annum. The lease came to a finish on 5 October 2086. Given that there were 60 years outstanding we estimated the premium to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of fees.