Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Brynford. Inevitably, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Brynford have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Brynford lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold premises in Brynford with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest 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 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service will provide you better control over the value of your Brynford leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the landlord of her two bedroom apartment in Brynford, Erin started the lease extension process as the 80 year threshold was fast advancing. The transaction was finalised in March 2009. The freeholder’s costs were kept to an absolute minimum.
Mr Leon Davis was assigned a lease of a recently refurbished apartment in Brynford in January 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Brynford with 100 year plus lease were worth £260,000. The average ground rent payable was £50 collected every twelve months. The lease finished on 12 October 2098. Considering the 72 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
Last November we were called by Dr O Allen , who moved into a ground floor apartment in Brynford in July 1998. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Brynford with an extended lease were valued about £254,200. The mid-range ground rent payable was £60 collected quarterly. The lease elapsed in 2077. Having 51 years remaining we estimated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of expenses.