Bracknell leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Bracknell residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bracknell you must check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Bracknell can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Bracknell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Logan, came very near to the 80-year mark with the lease on his leasehold flat in Bracknell. In buying his home two decades ago, the length of the lease was of minimal significance. Luckily, he realised he needed to take steps soon on Extending the lease. Logan arranged for a lease extension just under the wire last March. Logan and the freeholder subsequently settled on the final figure of £5,000 . If he not met the deadline, the figure would have gone up by at least £900.
Last year we were e-mailed by Mr and Mrs. N Bertrand , who completed a recently refurbished apartment in Bracknell in May 2005. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar homes in Bracknell with an extended lease were valued about £248,000. The average amount of ground rent was £65 collected yearly. The lease termination date was in 2087. Given that there were 63 years remaining we approximated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus costs.
Mr and Mrs. G Moore was assigned a lease of a garden apartment in Bracknell in March 2010. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Bracknell with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired in 2076. Considering the 52 years left we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including fees.