The market value of Brynford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is below than 80 years
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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 |
| 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. |
Using our service gives you enhanced control over the value of your Brynford leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan was the the leasehold owner of a 2 bedroom apartment in Brynford being sold with a lease of just over 59 years outstanding. Jonathan informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2013 we were called by Dr U Alexander who, having bought a purpose-built flat in Brynford in March 2003. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparable premises in Brynford with 100 year plus lease were valued about £235,200. The mid-range ground rent payable was £45 billed every twelve months. The lease ended on 14 November 2091. Taking into account 66 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.
In 2013 we were e-mailed by Ms W James who, having moved into a basement flat in Brynford in June 2000. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable properties in Brynford with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced monthly. The lease expired in 2102. Having 77 years remaining we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.