Bracknell leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease falls under eighty years - otherwise a higher amount will be due. Flat owners in Bracknell will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bracknell can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Bracknell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Leo, started to get close to the eighty-year mark with the lease on his basement apartment in Bracknell. In buying his flat 19 years previously, the length of the lease was of no bearing. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Leo extended the lease at the eleventh hour in January. Leo and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If the lease had fallen lower than 80 years, the amount would have escalated by a minimum £1,125.
Mr and Mrs. N Leroy moved into a ground floor apartment in Bracknell in April 2008. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Bracknell with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 billed quarterly. The lease finished in 2089. Given that there were 64 years left we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of expenses.
Last year we were e-mailed by Dr V Miller , who completed a ground floor flat in Bracknell in August 1999. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable residencies in Bracknell with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 invoiced per annum. The lease ran out in 2078. Taking into account 53 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.