When it comes to domestic leasehold premises in Broadstairs, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Anyone in Broadstairs with a lease approaching 81 years unexpired should seriously consider extending it without delay. When the lease term has under 80 years remaining, under the relevant statute the freeholder can calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Broadstairs with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | 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. |
Using our service will provide you enhanced control over the value of your Broadstairs leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her ground floor apartment in Broadstairs, Eleanor started the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work was finalised in January 2012. The landlord’s costs were kept to an absolute minimum.
Mrs Imogen Rodríguez was assigned a lease of a recently refurbished flat in Broadstairs in February 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable flats in Broadstairs with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 billed monthly. The lease ended on 26 February 2101. Having 75 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
Last February we were called by Mr Aarav Stewart , who owned a purpose-built apartment in Broadstairs in April 1995. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in Broadstairs with a long lease were valued about £250,400. The mid-range ground rent payable was £65 invoiced yearly. The lease terminated on 10 June 2090. Taking into account 64 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus expenses.