Chances are that where you own a flat in Brinklow you actually own a long leasehold interest over your property
Leasehold residencies in Brinklow with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Last year Luca, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Brinklow. Having purchased his property two decades ago, the unexpired term was of minimal interest. by good luck, he became aware that he would soon be paying an inflated amount for a lease extension. Luca was able to extend his lease at the eleventh hour last July. Luca and the freeholder via the managing agents in the end settled on the final figure of £6,000 . If he had missed the deadline, the figure would have increased by a minimum £950.
In 2009 we were approached by Mr Kai Mercier who, having acquired a ground floor apartment in Brinklow in July 2002. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in Brinklow with an extended lease were valued around £174,200. The mid-range amount of ground rent was £55 billed yearly. The lease concluded on 7 March 2076. Having 51 years outstanding we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.
Last year we were approach by Mr and Mrs. W Miller , who purchased a purpose-built flat in Brinklow in March 2012. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative homes in Brinklow with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease expired in 2096. Considering the 71 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 professional charges.