Broadway leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Broadway will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | 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. |
| 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. |
Retaining our service gives you better control over the value of your Broadway leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her garden flat in Broadway, Madeleine started the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was finalised in January 2015. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were phoned by Mr Liam López , who moved into a ground floor apartment in Broadway in September 2005. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative properties in Broadway with a long lease were in the region of £250,400. The average ground rent payable was £65 collected per annum. The lease came to a finish on 22 May 2090. Considering the 64 years left we approximated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 not including costs.
Last Winter we were contacted by Dr Ben Nguyen , who owned a first floor flat in Broadway in March 2009. The question was if we could estimate the price would be for a ninety year extension to my lease. Identical properties in Broadway with 100 year plus lease were in the region of £189,000. The mid-range ground rent payable was £55 billed per annum. The lease finished in 2079. Having 53 years remaining we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.