It’s an underpublicised truth that a Brook Green 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 Brook Green property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining falls below eighty years, you will then be required to pay 50% 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 extra value that a lease extension will add the property Most flat owners in Brook Green will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Brook Green with more than one hundred years left 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Brook Green,the lease extension experts 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 Brook Green valuers.
Sam owned a studio flat in Brook Green on the market with a lease of a little over 72 years remaining. Sam informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and secured satisfactory resolution informally and readily saleable.
Mr and Mrs. D Murphy completed a one bedroom flat in Brook Green in September 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar flats in Brook Green with a long lease were valued about £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease finished in 2096. Having 71 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Brook Green premises 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.