There is no doubt about it a leasehold property in South Brent is a wasting asset as a result of the shortening lease. Where the residual term has, more than one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in South Brent will meet the qualifying criteria; however a conveyancer will be able to advise whether you are eligible for a lease extension. 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 in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your South Brent leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the landlord of her one bedroom apartment in South Brent, Stephanie initiated the lease extension process as the 80 year mark was quickly advancing. The lease extension completed in January 2005. The landlord’s fees were kept to an absolute minimum.
Last Summer we were called by Mr John Torres , who was assigned a lease of a recently refurbished flat in South Brent in September 2007. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative properties in South Brent with an extended lease were in the region of £227,800. The average amount of ground rent was £45 billed yearly. The lease ran out on 18 February 2090. Taking into account 65 years as a residual term we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.
Mr H Bell purchased a purpose-built flat in South Brent in June 1995. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable premises in South Brent with a long lease were in the region of £275,000. The average ground rent payable was £55 billed every twelve months. The lease terminated on 3 October 2101. Considering the 76 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.