Broadstone leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be payable. Flat owners in Broadstone will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Broadstone with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Broadstone can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Broadstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Cameron, started to get near to the 80-year mark with the lease on his purpose- built apartment in Broadstone. Having purchased his home twenty years previously, the unexpired term was of no interest. Thankfully, he recognised he would imminently be paying an escalated premium for Extending the lease. Cameron extended the lease just under the wire in May. Cameron and the freeholder via the managing agents subsequently agreed on a premium of £6,000 . If he had missed the deadline, the figure would have become more exhorbitant by a minimum £1,025.
Mr G García purchased a first floor flat in Broadstone in September 2006. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical flats in Broadstone with 100 year plus lease were in the region of £227,800. The average ground rent payable was £45 invoiced every twelve months. The lease termination date was on 10 September 2090. Taking into account 65 years left we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
In 2009 we were phoned by Dr O Michel who, having bought a one bedroom apartment in Broadstone in January 2008. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Broadstone with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed quarterly. The lease ran out on 24 June 2101. Taking into account 76 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.