There is no doubt about it a leasehold property in South Brent is a wasting asset as a result of the diminishing lease term. If the lease has, more than 125 years to run then this decrease may be fractional however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in South Brent will qualify for this right; that being said a conveyancer will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
The lawyers that we work with handle South Brent 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.
Off the back of lengthy discussions with the landlord of her basement apartment in South Brent, Victoria initiated the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work completed in May 2015. The landlord’s charges were restricted to slightly above 650 pounds.
In 2010 we were e-mailed by Mr J Rogers who, having acquired a one bedroom flat in South Brent in September 2009. The question was if we could approximate the price would be to prolong the lease by an additional years. Identical premises in South Brent with a long lease were in the region of £250,000. The average amount of ground rent was £50 billed monthly. The lease expiry date was on 4 February 2095. Given that there were 69 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Dr N Gray owned a garden apartment in South Brent in April 1998. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar homes in South Brent with an extended lease were in the region of £285,000. The average ground rent payable was £55 billed monthly. The lease concluded in 2106. Taking into account 80 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.