Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Brinklow. Clearly, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Brinklow have the right to extend the lease for an additional 90 years under legislation. Please give due attention before delaying your Brinklow lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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 |
The conveyancing solicitors that we work with undertake Brinklow 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.
Subsequent to lengthy discussions with the landlord of her leasehold flat in Brinklow, Sophia started the lease extension process as the 80 year deadline was rapidly advancing. The transaction was concluded in June 2006. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were phoned by Mrs Phoebe Vincent who, having purchased a one bedroom apartment in Brinklow in October 2009. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Brinklow with an extended lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded in 2106. Taking into account 80 years unexpired we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
Last Summer we were contacted by Mr Y Pérez , who was assigned a lease of a purpose-built flat in Brinklow in November 2002. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative flats in Brinklow with 100 year plus lease were valued about £280,000. The average ground rent payable was £45 collected quarterly. The lease lapsed on 28 October 2095. Having 69 years as a residual term we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.