The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Brough have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do think carefully before delaying your Brough lease extension. Postponing that expense today simply escalates the premium you will ultimately be required to pay for a lease extension.
Leasehold premises in Brough with over 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Engaging our service will provide you better control over the value of your Brough leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Isaac, came seriously close to the eighty-year mark with the lease on his ground floor apartment in Brough. In buying his property 19 years ago, the unexpired term was of minimal concern. As luck would have it, he noticed he would soon be paying way over the odds for a lease extension. Isaac arranged for a lease extension at the eleventh hour in July. Isaac and the landlord eventually agreed on a premium of £6,000 . If the lease had slipped below 80 years, the price would have gone up by at least £1,000.
In 2014 we were phoned by Dr O Rivera who, having acquired a studio apartment in Brough in February 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Brough with an extended lease were worth £275,000. The mid-range ground rent payable was £65 collected yearly. The lease termination date was in 2094. Given that there were 68 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2009 we were phoned by Mrs M Roberts who, having took over the lease of a ground floor apartment in Brough in October 2007. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative premises in Brough with a long lease were in the region of £208,600. The mid-range amount of ground rent was £60 collected per annum. The lease finished on 18 May 2083. Taking into account 57 years remaining we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including fees.