Main reasons to commence your Broadway lease extension

Why you should start your Broadway lease extension today:

A Broadway lease depreciates with the years remaining on the lease.

The only way is down when it comes to Broadway lease terms. Broadway properties that have a lease term shorter than eighty years will drop in value even faster, and the cost of extending your lease will go up.

Broadway property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Broadway with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders will not finance a property on a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are regarded as insufficient for lending purposes.

Get in touch with one of our Broadway lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Broadway,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Broadway valuers.

Broadway Lease Extension Case Studies:

Sam, Broadway, Worcestershire

Last year Sam, started to get near to the eighty-year mark with the lease on his studio apartment in Broadway. Having purchased his property two decades ago, the length of the lease was of no importance. Thankfully, he noticed he needed to take steps soon on Extending the lease. Sam arranged for a lease extension just ahead of time in July. Sam and the freeholder via the management company eventually agreed on sum of £5,000 . If he not met the deadline, the premium would have increased by a minimum £1,100.

Broadway case:

Last year we were e-mailed by Mr and Mrs. T Lefebvre , who completed a basement apartment in Broadway in September 1998. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Similar homes in Broadway with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced monthly. The lease elapsed on 15 November 2102. Having 76 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.

Broadway case:

Dr Jasper Cox moved into a studio flat in Broadway in September 2007. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Broadway with a long lease were worth £257,800. The mid-range ground rent payable was £65 collected monthly. The lease ended on 11 March 2091. Considering the 65 years unexpired we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus professional charges.