When it comes to domestic leasehold property in South Brent, you are actually purchasing 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 lengthy period of time, you may consider 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 notably when there are less than eighty years remaining. Leasehold owners in South Brent with a lease nearing 81 years left should seriously think of extending it sooner than later. When a lease has below eighty years outstanding, under the current legislation the landlord is entitled to calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in South Brent with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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. |
The conveyancers that we work with undertake South Brent 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.
In the wake of 6 months of protracted correspondence with the freeholder of her two bedroom flat in South Brent, Holly initiated the lease extension process as the 80 year threshold was fast coming. The lease extension was concluded in September 2015. The freeholder’s costs were kept to an absolute minimum.
Dr P Rivera was assigned a lease of a recently refurbished flat in South Brent in February 2000. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparable residencies in South Brent with 100 year plus lease were worth £227,800. The mid-range ground rent payable was £45 billed quarterly. The lease termination date was in 2091. Considering the 65 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.
In 2013 we were e-mailed by Mr R Alexander who, having moved into a recently refurbished flat in South Brent in June 2011. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable properties in South Brent with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 collected annually. The lease lapsed in 2102. Considering the 76 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.