Unfortunately that a Brockenhurst residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Brockenhurst property prices.Once your lease gets to 85ish years, you should start considering 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 falls below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Brockenhurst will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Halifax | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
Engaging our service gives you increased control over the value of your Brockenhurst leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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.
Elijah owned a conversion flat in Brockenhurst being sold with a lease of a little over 61 years remaining. Elijah informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Elijah to exercise his statutory right. Elijah procured expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2011 we were e-mailed by Mrs I Ward who, having acquired a newly refurbished apartment in Brockenhurst in March 2001. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparative flats in Brockenhurst with 100 year plus lease were worth £205,000. The average ground rent payable was £50 invoiced yearly. The lease terminated on 16 March 2105. Having 79 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.
Last Winter we were e-mailed by Mrs Y Ramírez , who owned a garden flat in Brockenhurst in September 2000. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparable homes in Brockenhurst with a long lease were in the region of £275,000. The average amount of ground rent was £65 collected yearly. The lease termination date was on 21 June 2094. Having 68 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.