Brentwood residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Brentwood with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Brentwood,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brentwood valuers.
Subsequent to protracted negotiations with the landlord of her leasehold flat in Brentwood, Elizabeth commenced the lease extension process just as the lease was coming close to the all-important 80-year deadline. The lease extension was concluded in February 2011. The landlord’s costs were kept to an absolute minimum.
In 2014 we were contacted by Dr O Gunderson who, having bought a ground floor apartment in Brentwood in April 2009. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar flats in Brentwood with a long lease were in the region of £191,000. The average ground rent payable was £65 invoiced per annum. The lease terminated in 2083. Considering the 58 years remaining we estimated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including fees.
An example of a Lease Extension matter before the tribunal for a Brentwood flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The unexpired residue of the current lease was 57.5 years.