With a long leasehold property in Brook Green, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Residents in Brook Green with a lease nearing 81 years left should seriously consider extending it sooner as opposed to later. When a lease has below eighty years remaining, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
Using our service gives you better control over the value of your Brook Green leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her basement flat in Brook Green, Sarah started the lease extension process as the eighty year mark was rapidly approaching. The lease extension completed in October 2015. The freeholder’s fees were negotiated to under 700 GBP.
In 2010 we were contacted by Dr Lewis Taylor who, having moved into a first floor apartment in Brook Green in February 1997. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative flats in Brook Green with a long lease were worth £300,000. The mid-range amount of ground rent was £50 billed annually. The lease expired on 28 March 2101. Taking into account 76 years unexpired we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
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 related to 4 flats. The number of years remaining on the existing lease(s) was 70.58 years.