It’s a harsh certainty that a Brislington residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Brislington property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Brislington will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases 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 for the duration of the process.
Leasehold properties in Brislington with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Brislington 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.
Subsequent to unsuccessful discussions with the freeholder of her one bedroom flat in Brislington, Ella started the lease extension process just as the lease was approaching the all-important eighty-year deadline. The legal work was concluded in February 2014. The freeholder’s costs were kept to an absolute minimum.
Last month we were phoned by Mr K Brown , who completed a first floor apartment in Brislington in June 1995. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical premises in Brislington with 100 year plus lease were in the region of £233,200. The average amount of ground rent was £60 billed monthly. The lease elapsed in 2087. Having 61 years remaining we approximated the premium to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of expenses.
Mr and Mrs. N Moore moved into a garden apartment in Brislington in November 2006. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Brislington with an extended lease were valued around £166,800. The mid-range amount of ground rent was £50 invoiced yearly. The lease terminated in 2076. Given that there were 50 years remaining we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including expenses.