Unfortunately that a Brondesbury residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Brondesbury property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Brondesbury will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Brondesbury with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Brondesbury,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brondesbury valuers.
In recent months Seth, came precariously close to the eighty-year threshold with the lease on his first floor apartment in Brondesbury. Having bought his flat two decades ago, the lease term was of little interest. by good luck, it dawned on him that he needed to take action soon on a lease extension. Seth was able to extend his lease just in the nick of time last June. Seth and the freeholder subsequently agreed on the final figure of £6,000 . If the lease had descended below eighty years, the premium would have increased by a minimum £975.
In 2012 we were e-mailed by Mrs Alicia Lefebvre who, having was assigned a lease of a first floor apartment in Brondesbury in January 2007. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar residencies in Brondesbury with an extended lease were in the region of £295,000. The average amount of ground rent was £45 collected monthly. The lease elapsed on 4 February 2101. Taking into account 75 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
An example of a Lease Extension case for a Brondesbury premises 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.