It’s an underpublicised certainty that a Broadway residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Broadway property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term slips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Broadway will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland |
Retaining our service will provide you enhanced control over the value of your Broadway leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Riley, came very close to the eighty-year mark with the lease on his leasehold flat in Broadway. In buying his property twenty years ago, the unexpired term was of no interest. Fortunately, he recognised he would soon be paying an escalated premium for a lease extension. Riley extended the lease at the eleventh hour in July. Riley and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the figure would have increased by a minimum £975.
Last Spring we were phoned by Mr Leo Nelson , who purchased a studio apartment in Broadway in July 2011. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Broadway with 100 year plus lease were worth £213,600. The mid-range amount of ground rent was £60 collected annually. The lease concluded on 26 October 2083. Considering the 57 years outstanding we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus expenses.
Last Christmas we were e-mailed by Mr and Mrs. A López , who purchased a one bedroom flat in Broadway in January 2005. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical properties in Broadway with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ran out on 23 July 2103. Given that there were 77 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.