With a long leasehold property in Brough, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in Brough with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below 80 years outstanding, under the relevant statute the landlord can calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Brough with more than one hundred years remaining on the lease are sometimes regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Brough leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Blake owned a high value apartment in Brough being sold with a lease of a little over 59 years remaining. Blake informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Blake to exercise his statutory right. Blake obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Summer we were phoned by Mr Milo Adams , who acquired a studio flat in Brough in March 2005. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Brough with an extended lease were worth £200,000. The average ground rent payable was £50 collected monthly. The lease concluded on 23 January 2103. Given that there were 78 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Last Summer we were called by Dr Olivia Reed , who moved into a studio flat in Brough in July 2010. The question was if we could approximate the price would be to extend the lease by an additional years. Comparative residencies in Brough with a long lease were in the region of £267,600. The average ground rent payable was £65 collected monthly. The lease expiry date was on 5 October 2092. Having 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including expenses.