The re-sale value of a leasehold property in Brown Edge is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed well before the 80 year mark. Leasehold Reform legislation enables Brown Edge qualifying lessees to an additional term of 90 years on top of the unexpired term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Brown Edge leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the freeholder of her basement apartment in Brown Edge, Samantha started the lease extension process just as the lease was approaching the crucial 80-year mark. The legal work was finalised in August 2013. The landlord’s charges were restricted to under 450 pounds.
Mr and Mrs. O Nguyen was assigned a lease of a first floor apartment in Brown Edge in July 2001. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Similar homes in Brown Edge with an extended lease were valued about £166,400. The average amount of ground rent was £60 collected per annum. The lease came to a finish on 19 August 2080. Taking into account 54 years outstanding we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus expenses.
Dr U Moore took over the lease of a ground floor apartment in Brown Edge in September 2012. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical flats in Brown Edge with an extended lease were valued around £232,800. The mid-range amount of ground rent was £45 collected annually. The lease lapsed on 16 February 2091. Considering the 65 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.