It’s an underpublicised certainty that a Bruton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Bruton property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. Most leasehold owners in Bruton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Bruton,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 Bruton valuers.
Off the back of protracted correspondence with the freeholder of her first floor apartment in Bruton, Georgia initiated the lease extension process just as her lease was approaching the crucial eighty-year mark. The transaction completed in August 2012. The freeholder’s costs were negotiated to approximately 450 GBP.
Last Christmas we were contacted by Mrs J Sánchez , who was assigned a lease of a garden apartment in Bruton in March 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Bruton with an extended lease were in the region of £223,400. The mid-range amount of ground rent was £60 collected yearly. The lease finished in 2084. Taking into account 59 years remaining we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 not including professional charges.
In 2011 we were e-mailed by Mrs Lucy Bennett who, having took over the lease of a garden flat in Bruton in November 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparable homes in Bruton with a long lease were worth £205,000. The average ground rent payable was £50 collected per annum. The lease elapsed in 2104. Considering the 79 years unexpired we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.