With a long leasehold property in South Brent, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension 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 remaining. Leasehold owners in South Brent with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When a lease has under eighty years remaining, under the current Act the landlord can calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in South Brent with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 gives you enhanced control over the value of your South Brent leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her one bedroom flat in South Brent, Rebecca commenced the lease extension process as the eighty year threshold was swiftly approaching. The transaction completed in April 2006. The freeholder’s costs were restricted to under 450 GBP.
Mr J Morris bought a garden flat in South Brent in July 2000. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable homes in South Brent with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expired on 8 October 2099. Given that there were 73 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
Last Spring we were contacted by Ms R Lefebvre , who acquired a studio apartment in South Brent in November 2003. The question was if we could estimate the price could be to extend the lease by 90 years. Similar premises in South Brent with 100 year plus lease were valued around £264,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease ended in 2079. Considering the 53 years outstanding we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 not including professional charges.