Brundall residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold residencies in Brundall with in excess of one hundred years unexpired 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 freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Brundall 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.
After lengthy negotiations with the freeholder of her purpose-built flat in Brundall, Megan initiated the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension completed in August 2009. The landlord’s costs were negotiated to approximately 500 pounds.
Last Winter we were phoned by Dr F François , who moved into a recently refurbished flat in Brundall in April 2010. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative residencies in Brundall with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 collected per annum. The lease terminated in 2093. Considering the 67 years left we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus costs.
Mr and Mrs. W Martínez owned a purpose-built apartment in Brundall in October 1996. The question was if we could approximate the premium would be for a ninety year lease extension. Comparative premises in Brundall with a long lease were in the region of £206,200. The average amount of ground rent was £60 billed per annum. The lease finished on 14 February 2082. Having 56 years remaining we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.