The closer a residential lease in South Brent gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond one hundred years to run then this decrease may be fractional nevertheless there will become a point in time 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 increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in South Brent will qualify for this right; nevertheless a conveyancer should be able to advise whether you are eligible to extend your lease. 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 properties in South Brent with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in South Brent,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Brent valuers.
In the wake of 6 months of lengthy negotiations with the freeholder of her ground floor apartment in South Brent, Kayleigh commenced the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction completed in February 2012. The freeholder’s fees were negotiated to below six hundred pounds.
In 2011 we were phoned by Mr and Mrs. C David who, having bought a one bedroom flat in South Brent in June 2005. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative flats in South Brent with an extended lease were in the region of £265,000. The average amount of ground rent was £55 invoiced quarterly. The lease expiry date was in 2099. Given that there were 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.
Mr and Mrs. K Lee acquired a studio flat in South Brent in September 2010. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparable flats in South Brent with an extended lease were worth £166,400. The average ground rent payable was £60 invoiced quarterly. The lease terminated in 2079. Given that there were 54 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including expenses.