Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Brynford. Clearly, the length of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Brynford have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Please give due deliberation before delaying your Brynford lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold residencies in Brynford with over one hundred 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Last year Callum, came precariously near to the 80-year mark with the lease on his ground floor flat in Brynford. In buying his flat two decades ago, the lease term was of no importance. Luckily, he noticed he needed to take steps soon on a lease extension. Callum was able to extend his lease just under the wire in May. Callum and the freeholder subsequently settled on sum of £6,000 . If the lease had slid to less than eighty years, the amount would have gone up by a minimum £975.
Mr and Mrs. S Roberts took over the lease of a one bedroom apartment in Brynford in June 2001. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative residencies in Brynford with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 billed annually. The lease lapsed in 2104. Given that there were 78 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.
Ms Alisha Roux was assigned a lease of a studio flat in Brynford in November 2002. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Brynford with an extended lease were in the region of £191,000. The average amount of ground rent was £65 collected annually. The lease terminated in 2084. Having 58 years outstanding we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 plus fees.