The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Brockenhurst have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Brockenhurst lease extension. Putting off that expense now simply increases the premium you will eventually have to pay for a lease extension.
Leasehold premises in Brockenhurst with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Brockenhurst,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brockenhurst valuers.
Jude owned a high value apartment in Brockenhurst being sold with a lease of a little over 59 years unexpired. Jude informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jude to exercise his statutory right. Jude obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
In 2013 we were e-mailed by Mrs U Campbell who, having owned a purpose-built flat in Brockenhurst in September 2010. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Brockenhurst with 100 year plus lease were in the region of £171,800. The mid-range ground rent payable was £55 collected quarterly. The lease lapsed on 15 June 2076. Considering the 50 years remaining we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus professional charges.
In 2010 we were called by Mrs U Scott who, having purchased a basement flat in Brockenhurst in August 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Brockenhurst with a long lease were valued about £280,000. The mid-range ground rent payable was £45 billed annually. The lease lapsed in 2096. Having 70 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.