There is no doubt about it a leasehold flat or house in Brixworth is a wasting asset as a result of the shortening lease. If the residual term has, over 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Many flat owners in Brixworth will meet the qualifying criteria; that being said a lawyer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 are not acceptable. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Brixworth leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the landlord of her studio apartment in Brixworth, Anna started the lease extension process as the 80 year threshold was quickly approaching. The lease extension was concluded in June 2012. The freeholder’s costs were restricted to a tad over 600 pounds.
Last Autumn we were contacted by Dr Chelsea Martínez , who bought a one bedroom apartment in Brixworth in March 2007. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable homes in Brixworth with an extended lease were in the region of £220,400. The mid-range ground rent payable was £45 invoiced quarterly. The lease expired on 11 February 2090. Having 64 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of expenses.
Last Spring we were contacted by Mr James Cox , who moved into a first floor flat in Brixworth in July 2012. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparable premises in Brixworth with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected per annum. The lease came to a finish in 2101. Having 75 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.