Chances are that where you own a flat in Brynford you actually own a long leasehold interest over your property
Leasehold premises in Brynford with in excess of 100 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Brynford leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian owned a studio flat in Brynford on the market with a lease of a few days over 59 years remaining. Sebastian on an informal basis contacted his freeholder being a well known London-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 subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Sebastian to invoke his statutory right. Sebastian procured expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2012 we were approached by Mr and Mrs. T Vincent who, having took over the lease of a garden flat in Brynford in September 2009. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar flats in Brynford with an extended lease were in the region of £227,800. The average ground rent payable was £45 billed every twelve months. The lease elapsed in 2090. Taking into account 65 years left we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.
In 2013 we were e-mailed by Mr John Thompson who, having bought a ground floor flat in Brynford in July 2012. The question was if we could estimate the premium would be to extend the lease by 90 years. Identical premises in Brynford with a long lease were valued around £270,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2101. Considering the 76 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.