The re-sale value of a leasehold property in Browns Green is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when the lease still has 82 years remaining so that all matters can be concluded well before the 80 year cut off point. Current legislation enables Browns Green qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Retaining our service will provide you enhanced control over the value of your Browns Green leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her leasehold apartment in Browns Green, Jodie started the lease extension process as the 80 year deadline was rapidly approaching. The transaction completed in July 2006. The landlord’s costs were restricted to about 450 pounds.
Mr J François acquired a one bedroom flat in Browns Green in February 1999. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical residencies in Browns Green with 100 year plus lease were valued around £265,000. The average ground rent payable was £50 collected monthly. The lease concluded on 10 May 2098. Having 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
In 2013 we were e-mailed by Dr S David who, having purchased a one bedroom flat in Browns Green in January 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Browns Green with a long lease were valued about £264,000. The average amount of ground rent was £60 collected monthly. The lease lapsed on 12 February 2078. Considering the 53 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including legals.