Unfortunately that a Brislington residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Brislington property market.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. Most leasehold owners in Brislington will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Brislington with more than one hundred 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 freehold unless savings on ground rent and maintenance charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Brislington leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the landlord of her first floor apartment in Brislington, Eleanor initiated the lease extension process as the eighty year mark was swiftly nearing. The legal work completed in July 2007. The freeholder’s charges were restricted to less than 550 GBP.
Last Summer we were contacted by Mr and Mrs. G Edwards , who purchased a first floor flat in Brislington in August 1997. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable residencies in Brislington with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced annually. The lease expired on 20 March 2077. Taking into account 52 years unexpired we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus costs.
In 2014 we were contacted by Mr and Mrs. D François who, having was assigned a lease of a ground floor flat in Brislington in January 2007. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Comparative premises in Brislington with a long lease were worth £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease end date was in 2097. Taking into account 72 years remaining we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.