Brockenhurst leases on residential deteriorating in value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Brockenhurst will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Brockenhurst with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Brockenhurst 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 conveyancer we work with provide it.
In recent months Tommy, came perilously close to the eighty-year threshold with the lease on his two bedroom flat in Brockenhurst. Having bought his flat 19 years previously, the unexpired term was of no concern. by good luck, he became aware that he needed to take steps soon on a lease extension. Tommy was able to extend his lease just in the nick of time in July. Tommy and the landlord eventually agreed on an amount of £5,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,150.
In 2011 we were phoned by Ms I Bennett who, having acquired a one bedroom apartment in Brockenhurst in March 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical homes in Brockenhurst with an extended lease were in the region of £198,800. The average amount of ground rent was £55 invoiced yearly. The lease finished in 2081. Taking into account 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including legals.
Mrs Lucy Walker owned a garden flat in Brockenhurst in November 2004. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable premises in Brockenhurst with an extended lease were valued about £295,000. The average ground rent payable was £50 billed annually. The lease expired on 7 March 2101. Considering the 75 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.