It’s a harsh certainty that a Broadclyst residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Broadclyst property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. The majority of flat owners in Broadclyst will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Lease extensions in Broadclyst can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Broadclyst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful correspondence with the landlord of her studio flat in Broadclyst, Mia started the lease extension process just as the lease was approaching the all-important eighty-year threshold. The lease extension completed in October 2011. The freeholder’s costs were restricted to less than 500 GBP.
Last year we were approach by Dr K Garcia , who completed a first floor flat in Broadclyst in February 2000. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable premises in Broadclyst with 100 year plus lease were in the region of £233,200. The average amount of ground rent was £60 billed yearly. The lease expiry date was on 15 March 2087. Considering the 61 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including fees.
Mr and Mrs. A Reed acquired a first floor flat in Broadclyst in July 1996. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable properties in Broadclyst with 100 year plus lease were valued around £171,800. The average amount of ground rent was £55 collected monthly. The lease finished on 7 June 2076. Having 50 years unexpired we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including costs.