The only way is down when it comes to Broadstone lease terms. Broadstone properties that have a remaining term shorter than eighty years will de-escalate in value at a rapid rate, and the cost of extending your lease will increase.
Leasehold properties in Broadstone with over 100 years left 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Broadstone,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Broadstone valuers.
Trailing protracted negotiations with the landlord of her leasehold apartment in Broadstone, Kelsey commenced the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was finalised in November 2012. The freeholder’s charges were kept to an absolute minimum.
Last month we were phoned by Mr and Mrs. G Sharif , who bought a basement apartment in Broadstone in November 2010. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Similar homes in Broadstone with a long lease were valued about £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished in 2097. Having 72 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Mr and Mrs. N Ricardo took over the lease of a studio flat in Broadstone in October 2012. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparative residencies in Broadstone with 100 year plus lease were valued about £256,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease ended in 2077. Given that there were 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £41,800 and £48,400 plus expenses.