The market value of Brynford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than eighty years
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
Regardless of whether you are a tenant or a freeholder in Brynford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brynford valuers.
Leon was the the leasehold proprietor of a conversion flat in Brynford on the market with a lease of a little over 59 years unexpired. Leon informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and secured satisfactory deal informally and readily saleable.
Last Spring we were contacted by Mr Finley Bell , who moved into a basement flat in Brynford in August 1996. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical flats in Brynford with a long lease were valued around £193,400. The mid-range ground rent payable was £65 billed per annum. The lease came to a finish on 13 September 2084. Taking into account 59 years left we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus professional charges.
Mrs K Mercier owned a garden apartment in Brynford in May 1996. We are asked if we could estimate the price could be to prolong the lease by 90 years. Similar homes in Brynford with 100 year plus lease were valued around £250,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease lapsed on 23 February 2095. Considering the 70 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.