As the the remaining lease term of a Broadclyst residential lease lessens so does its value and therefore the value of your property. Where the residual term has, over one hundred years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Broadclyst will qualify for this right; that being said a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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 will provide you increased control over the value of your Broadclyst leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her two bedroom apartment in Broadclyst, Yasmin initiated the lease extension process just as her lease was approaching the critical 80-year deadline. The legal work was concluded in July 2013. The landlord’s costs were restricted to below 600 GBP.
In 2010 we were called by Dr Gabriel Lefebvre who, having bought a studio flat in Broadclyst in April 2000. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar residencies in Broadclyst with an extended lease were worth £181,600. The mid-range ground rent payable was £55 billed quarterly. The lease terminated on 4 April 2077. Considering the 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus costs.
Last month we were contacted by Mr and Mrs. O Simon , who took over the lease of a purpose-built flat in Broadclyst in July 1997. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Broadclyst with a long lease were valued around £285,000. The average ground rent payable was £45 invoiced annually. The lease ended in 2097. Taking into account 72 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.