The re-sale value of a leasehold property in Brynford depends on how many years the lease has remaining. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be addressed well before the 80 year threshold. Statute enables Brynford qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Brynford with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Brynford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brynford valuers.
Following unsuccessful correspondence with the landlord of her garden flat in Brynford, Courtney started the lease extension process as the eighty year threshold was rapidly advancing. The legal work was concluded in September 2007. The freeholder’s fees were kept to an absolute minimum.
Last Winter we were called by Ms Jasmine Morel , who acquired a one bedroom flat in Brynford in April 1995. We are asked if we could approximate the premium could be to extend the lease by 90 years. Identical homes in Brynford with 100 year plus lease were valued about £203,200. The average amount of ground rent was £65 invoiced every twelve months. The lease terminated in 2086. Considering the 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including legals.
In 2014 we were e-mailed by Dr Henry King who, having acquired a one bedroom apartment in Brynford in May 2006. We are asked if we could estimate the price could be for a 90 year lease extension. Similar properties in Brynford with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 invoiced yearly. The lease concluded in 2097. Considering the 72 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.