When it comes to residential leasehold premises in Brynford, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years left. Leasehold owners in Brynford with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the relevant Act the landlord is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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 |
| 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. |
Retaining our service will provide you better 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.
After protracted discussions with the freeholder of her garden flat in Brynford, Mollie started the lease extension process as the 80 year threshold was rapidly coming. The transaction was finalised in October 2011. The landlord’s fees were kept to an absolute minimum.
In 2013 we were approached by Mr Y Rivera who, having purchased a garden apartment in Brynford in May 2007. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative residencies in Brynford with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease came to a finish on 13 May 2077. Having 51 years outstanding we calculated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 not including fees.
In 2010 we were phoned by Dr N Nelson who, having owned a garden apartment in Brynford in August 2007. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative properties in Brynford with a long lease were valued about £215,600. The average ground rent payable was £45 invoiced annually. The lease terminated in 2088. Given that there were 62 years as a residual term we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including professional charges.