For anyone whose Brinklow property is held on a long lease, the message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold properties in Brinklow with more than 100 years left 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 buying 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. |
| 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. |
| Halifax | 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. |
Using our service will provide you better control over the value of your Brinklow leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her garden apartment in Brinklow, Alice started the lease extension process just as the lease was nearing the all-important eighty-year deadline. The legal work was finalised in November 2010. The landlord’s charges were kept to an absolute minimum.
Last year we were phoned by Mr and Mrs. G Edwards , who owned a garden apartment in Brinklow in May 2012. We are asked if we could approximate the premium could be to extend the lease by an additional years. Identical premises in Brinklow with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed quarterly. The lease ended in 2094. Considering the 68 years remaining we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.
Mr and Mrs. I Ramírez completed a studio apartment in Brinklow in January 2004. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar homes in Brinklow with an extended lease were valued about £213,600. The mid-range ground rent payable was £60 billed every twelve months. The lease finished in 2083. Given that there were 57 years remaining we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.