As the the remaining lease term of a Brondesbury residential lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than 80 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 rational as to why you should consider extending without delay. Most flat owners in Brondesbury will meet the qualifying criteria; nevertheless a lawyer should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Brondesbury with in excess of 100 years outstanding 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 service 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Brondesbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the landlord of her ground floor apartment in Brondesbury, Emma initiated the lease extension process as the 80 year mark was rapidly approaching. The lease extension completed in August 2014. The freeholder’s charges were negotiated to slightly above 700 pounds.
Mr I White was assigned a lease of a one bedroom apartment in Brondesbury in October 1999. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Brondesbury with a long lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced annually. The lease termination date was in 2081. Given that there were 55 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of expenses.
An example of a Lease Extension decision for a Brondesbury residence is 50a Cavendish Road in April 2014. The Tribunal determines that the premium payable by the Applicant in respect of the extension of the lease for the flat was £82,319. This case affected 1 flat. The unexpired lease term was 49.26 years.