The closer a domestic lease in Brentford gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Brentford will qualify for this right; nevertheless a lawyer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Brentford with over one hundred years unexpired on the lease are often 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 estate charges warrant it.
| 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
The lawyers that we work with procure Brentford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Half a year ago John, started to get near to the 80-year mark with the lease on his one bedroom flat in Brentford. Having bought his property two decades ago, the length of the lease was of minimal interest. As luck would have it, he realised he would soon be paying an inflated amount for a lease extension. John arranged for a lease extension just under the wire last September. John and the landlord subsequently settled on sum of £5,000 . If the lease had slid lower than 80 years, the price would have become more exhorbitant by at least £1,025.
Last Christmas we were phoned by Ms F Collins , who was assigned a lease of a newly refurbished apartment in Brentford in September 2001. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Identical homes in Brentford with an extended lease were worth £233,200. The average amount of ground rent was £60 invoiced monthly. The lease elapsed on 4 May 2086. Having 61 years left we approximated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 not including fees.
An example of a Freehold Enfranchisement case for a Brentford flat is 105 & 105A Seaford Road in July 2013. The tribunal determined that the price payable for the freehold interest in the Property was £43,985 . This sum was to be paid into Brentford County Court to enable the matter to proceed This case was in relation to 2 flats.