When it comes to residential leasehold premises in Brislington, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Leasehold owners in Brislington with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. When a lease has fewer than eighty years left, under the current legislation the freeholder can calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| 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. |
Retaining our service will provide you better control over the value of your Brislington leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Mason was the the leasehold proprietor of a conversion apartment in Brislington being marketed with a lease of just over 59 years remaining. Mason informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Mason to invoke his statutory right. Mason obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were phoned by Mr and Mrs. R Sharif who, having took over the lease of a one bedroom flat in Brislington in March 2002. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable residencies in Brislington with an extended lease were valued around £260,200. The average ground rent payable was £65 invoiced every twelve months. The lease concluded in 2092. Taking into account 66 years outstanding we calculated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 not including fees.
Ms Kelsey Dupont completed a first floor apartment in Brislington in March 2000. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable properties in Brislington with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced annually. The lease concluded on 21 November 2081. Taking into account 55 years unexpired we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including costs.