It’s a harsh certainty that a Broadclyst residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Broadclyst property market.Once your lease gets to 85ish years, you need to 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 slips lower than 80 years - otherwise a higher amount will be due. Most leasehold owners in Broadclyst will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Santander | |
| TSB |
Regardless of whether you are a tenant or a landlord in Broadclyst,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Broadclyst valuers.
Last Spring Owen, came dangerously close to the eighty-year threshold with the lease on his one bedroom apartment in Broadclyst. Having purchased his property 19 years previously, the length of the lease was of minimal relevance. As luck would have it, he became aware that he would imminently be paying an inflated amount for Extending the lease. Owen arranged for a lease extension just under the wire in January. Owen and the landlord subsequently agreed on the final figure of £5,500 . If he not met the deadline, the price would have increased by at least £1,125.
Dr Katherine Ali owned a one bedroom flat in Broadclyst in November 2007. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative properties in Broadclyst with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 invoiced annually. The lease ran out on 14 October 2104. Given that there were 78 years outstanding we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
Mr and Mrs. H Gray took over the lease of a garden flat in Broadclyst in July 2006. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Broadclyst with 100 year plus lease were valued around £267,600. The mid-range ground rent payable was £65 billed per annum. The lease termination date was in 2093. Given that there were 67 years left we estimated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 plus costs.