Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Brundall. Clearly, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Brundall have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do give due attention before delaying your Brundall lease extension. Putting off that expense now only increases the price you will eventually incur for a lease extension
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Brundall,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brundall valuers.
Ethan was the the leasehold owner of a high value apartment in Brundall being marketed with a lease of fraction over sixty years outstanding. Ethan on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last year we were contacted by Mrs S Davies , who was assigned a lease of a garden flat in Brundall in May 1998. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Similar homes in Brundall with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 collected per annum. The lease terminated in 2080. Taking into account 55 years remaining we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.
Last Autumn we were phoned by Mr and Mrs. G Garcia , who took over the lease of a ground floor apartment in Brundall in July 1998. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparative properties in Brundall with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease concluded in 2100. Having 75 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.