When it comes to residential leasehold premises in Brockenhurst, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years remaining. Anyone in Brockenhurst with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has under eighty years remaining, under the relevant statute the landlord is entitled to calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Brockenhurst with over 100 years remaining on the lease are sometimes regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Brockenhurst can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Brockenhurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy correspondence with the freeholder of her leasehold flat in Brockenhurst, Jennifer commenced the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work completed in October 2011. The landlord’s fees were kept to an absolute minimum.
In 2013 we were phoned by Mr and Mrs. J Williams who, having was assigned a lease of a purpose-built apartment in Brockenhurst in August 2005. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Similar premises in Brockenhurst with an extended lease were worth £225,800. The mid-range ground rent payable was £60 collected yearly. The lease expiry date was on 20 February 2086. Taking into account 60 years unexpired we calculated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 not including fees.
Mr Samuel Morel moved into a ground floor apartment in Brockenhurst in June 1998. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Brockenhurst with 100 year plus lease were valued around £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease ran out in 2106. Having 80 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.