The market value of Brook Green leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is less than 80 years
Leasehold properties in Brook Green with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant 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. |
| Chelsea 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Brook Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Max, started to get close to the 80-year mark with the lease on his one bedroom apartment in Brook Green. In buying his flat two decades ago, the lease term was of minimal interest. Fortunately, he noticed he needed to take steps soon on Extending the lease. Max extended the lease at the eleventh hour last June. Max and the freeholder ultimately agreed on an amount of £5,500 . If he not met the deadline, the amount would have increased by at least £875.
Last April we were e-mailed by Mr and Mrs. B Petit , who owned a basement flat in Brook Green in June 2005. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Brook Green with a long lease were worth £280,000. The average ground rent payable was £45 billed every twelve months. The lease expired on 21 August 2095. Considering the 69 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
An example of a Freehold Enfranchisement decision for a Brook Green residence is 83 Sinclair Road in September 2010. The decision of the Tribunal was that the price to be paid by the Applicant to the Respondent for the freehold interest in the Property was the sum of £93,650 This case was in relation to 4 flats. The unexpired lease term was 70.58 years.