For anyone whose Brynford home is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Brynford with over one hundred years remaining 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Brynford 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 lawyer we work with provide it.
Tyler owned a high value flat in Brynford being marketed with a lease of fraction over fifty eight years outstanding. Tyler informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last April we were e-mailed by Ms U Robinson , who completed a one bedroom apartment in Brynford in June 2004. The question was if we could approximate the price could be to prolong the lease by 90 years. Identical residencies in Brynford with a long lease were in the region of £208,200. The average amount of ground rent was £65 invoiced annually. The lease elapsed on 10 July 2087. Having 61 years left we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus professional charges.
Dr Niamh Martínez acquired a first floor flat in Brynford in April 2010. The question was if we could approximate the price could be for a ninety year lease extension. Comparable properties in Brynford with an extended lease were valued about £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ended on 10 November 2098. Having 72 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.