The market value of Brinklow leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is below than eighty years
Leasehold properties in Brinklow with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| TSB | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Brinklow,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brinklow valuers.
In recent months Owen, came perilously close to the eighty-year mark with the lease on his basement apartment in Brinklow. In buying his property 18 years ago, the lease term was of no concern. Thankfully, it dawned on him that he would imminently be paying way over the odds for a lease extension. Owen was able to extend his lease just in the nick of time in March. Owen and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he had missed the deadline, the figure would have gone up by at least £1,075.
In 2012 we were e-mailed by Mr and Mrs. H James who, having completed a one bedroom apartment in Brinklow in June 2003. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Brinklow with a long lease were in the region of £196,400. The mid-range ground rent payable was £55 invoiced every twelve months. The lease finished on 5 August 2080. Having 54 years outstanding we approximated the premium to the landlord to extend the lease to be between £35,200 and £40,600 not including expenses.
Last Winter we were contacted by Mr and Mrs. D Murphy , who bought a one bedroom apartment in Brinklow in May 1996. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Brinklow with a long lease were in the region of £295,000. The average amount of ground rent was £45 billed monthly. The lease came to a finish on 21 September 2100. Taking into account 74 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.