It’s a harsh certainty that a Broadstone residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Broadstone property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Broadstone will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Broadstone with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Broadstone 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.
Trailing protracted discussions with the freeholder of her purpose-built apartment in Broadstone, Nicole started the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction was concluded in February 2014. The landlord’s charges were negotiated to a tad over 700 pounds.
Dr Austin Nelson completed a studio apartment in Broadstone in October 2012. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable premises in Broadstone with an extended lease were in the region of £264,000. The mid-range amount of ground rent was £60 billed yearly. The lease concluded on 7 February 2078. Considering the 53 years remaining we approximated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of costs.
Last Christmas we were contacted by Ms Millie André , who moved into a basement apartment in Broadstone in March 2010. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Broadstone with 100 year plus lease were in the region of £220,400. The average ground rent payable was £45 collected annually. The lease expired in 2089. Considering the 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 plus legals.