Unfortunately that a Brinklow residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Brinklow property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Brinklow will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | 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. |
Regardless of whether you are a tenant or a landlord 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.
Finn was the the leasehold proprietor of a conversion flat in Brinklow on the market with a lease of just over 72 years outstanding. Finn informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Finn to invoke his statutory right. Finn procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Winter we were called by Dr Freddie Jones , who completed a newly refurbished flat in Brinklow in April 2009. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparable properties in Brinklow with 100 year plus lease were in the region of £248,000. The average amount of ground rent was £65 billed quarterly. The lease came to a finish in 2088. Given that there were 63 years left we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of legals.
In 2014 we were contacted by Mr and Mrs. V Morel who, having purchased a studio apartment in Brinklow in January 2010. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative premises in Brinklow with 100 year plus lease were worth £181,600. The average amount of ground rent was £55 collected per annum. The lease terminated in 2077. Taking into account 52 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.