When it comes to residential leasehold property in Brondesbury, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Brondesbury with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has below eighty years left, under the relevant legislation the freeholder can calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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; |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Brondesbury leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Rory, came perilously close to the 80-year mark with the lease on his basement flat in Brondesbury. In buying his home 18 years previously, the lease term was of minimal significance. by good luck, he noticed he needed to take steps soon on Extending the lease. Rory arranged for a lease extension at the eleventh hour in March. Rory and the landlord in the end settled on an amount of £5,000 . If he not met the deadline, the price would have increased by at least £1,000.
Mrs Laura Cook was assigned a lease of a recently refurbished flat in Brondesbury in January 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Brondesbury with a long lease were valued about £198,800. The average amount of ground rent was £55 billed monthly. The lease ended on 10 April 2080. Taking into account 55 years unexpired we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including legals.
An example of a Lease Extension decision for a Brondesbury residence is 50a Cavendish Road in April 2014. The Tribunal determines that the premium payable by the Applicant in respect of the extension of the lease for the flat was £82,319. This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 49.26 years.