The market value of a leasehold property in Broadstairs is impacted by how long the lease has remaining. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded in advance of the 80 year cut off point. Statute enables Broadstairs qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| National Westminster Bank | |
| The Mortgage Works |
The conveyancing solicitors that we work with undertake Broadstairs lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Half a year ago Ibrahim, started to get close to the eighty-year threshold with the lease on his first floor flat in Broadstairs. Having bought his property twenty years ago, the lease term was of minimal bearing. Thankfully, he realised he needed to take steps soon on Extending the lease. Ibrahim was able to extend his lease just ahead of time last September. Ibrahim and the freeholder ultimately agreed on an amount of £5,000 . If he had missed the deadline, the premium would have become more exhorbitant by at least £850.
In 2014 we were called by Dr Samantha Campbell who, having moved into a purpose-built apartment in Broadstairs in May 1997. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Broadstairs with a long lease were valued around £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ended on 26 February 2106. Given that there were 80 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Mr H Scott purchased a ground floor apartment in Broadstairs in May 2007. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Identical premises in Broadstairs with a long lease were valued about £280,000. The average ground rent payable was £45 invoiced yearly. The lease terminated in 2095. Given that there were 69 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.