There is no doubt about it a leasehold flat or house in Brynford is a wasting asset as a result of the shortening lease. Where the lease has, beyond 99 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. The majority of flat owners in Brynford will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Brynford with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you better control over the value of your Brynford leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Riley, started to get close to the eighty-year mark with the lease on his first floor apartment in Brynford. Having purchased his home twenty years previously, the unexpired term was of little bearing. Fortunately, he realised he needed to take action soon on Extending the lease. Riley was able to extend his lease at the eleventh hour last March. Riley and the landlord who owned the flat above eventually settled on a premium of £5,000 . If the lease had slipped lower than eighty years, the premium would have gone up by a minimum £1,000.
Dr Ashleigh Norbert moved into a one bedroom flat in Brynford in September 1996. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Brynford with a long lease were worth £256,600. The mid-range ground rent payable was £60 billed annually. The lease came to a finish in 2077. Taking into account 52 years left we estimated the premium to the landlord to extend the lease to be between £41,800 and £48,400 exclusive of professional charges.
Last year we were contacted by Mr Eliot Turner , who acquired a garden apartment in Brynford in February 2010. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable properties in Brynford with 100 year plus lease were valued around £218,000. The average amount of ground rent was £45 billed per annum. The lease concluded in 2088. Considering the 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including legals.