Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Broadstairs. Inevitably, the length of lease left shortens over time. This is often overlooked and only becomes a problem when the residence has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Broadstairs have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Broadstairs lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Broadstairs,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Broadstairs valuers.
George was the the leasehold owner of a 2 bedroom flat in Broadstairs being marketed with a lease of a few days over fifty eight years unexpired. George on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were George to exercise his statutory right. George procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Mr Tommy Adams was assigned a lease of a one bedroom flat in Broadstairs in October 1995. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Broadstairs with 100 year plus lease were in the region of £248,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease came to a finish in 2089. Given that there were 63 years left we estimated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of legals.
Last Autumn we were called by Ms Jasmine Rivera , who took over the lease of a studio flat in Broadstairs in October 1997. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Broadstairs with a long lease were in the region of £181,600. The average ground rent payable was £55 billed per annum. The lease concluded on 2 March 2078. Considering the 52 years outstanding we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including costs.