The closer a residential lease in Brough gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 99 years remaining then this decrease may be negligible however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Many flat owners in Brough will qualify for this right; however a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Brough with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
The conveyancers that we work with procure Brough 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.
Teddy owned a high value apartment in Brough on the market with a lease of a few days over 59 years outstanding. Teddy on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. P Norbert owned a one bedroom apartment in Brough in May 2005. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical properties in Brough with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease ran out in 2099. Having 73 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
In 2012 we were approached by Ms Bethany Howard who, having bought a basement apartment in Brough in April 2001. The question was if we could approximate the price would be to prolong the lease by ninety years. Similar properties in Brough with an extended lease were in the region of £240,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease terminated in 2088. Considering the 62 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of costs.