The market value of a leasehold property in Bromham is impacted by how long the lease has left to run. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be addressed in advance of the 80 year threshold. Statute entitles Bromham qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Bromham with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bromham can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bromham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful discussions with the landlord of her studio flat in Bromham, Chloe commenced the lease extension process as the eighty year threshold was swiftly coming. The lease extension was finalised in September 2014. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were called by Mrs Abbie Khan , who took over the lease of a one bedroom apartment in Bromham in July 2010. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparable properties in Bromham with 100 year plus lease were valued around £240,600. The average amount of ground rent was £60 invoiced every twelve months. The lease concluded in 2087. Having 62 years remaining we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus professional charges.
Last Christmas we were called by Ms E Robinson , who took over the lease of a one bedroom flat in Bromham in June 2011. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar homes in Bromham with 100 year plus lease were worth £174,200. The average ground rent payable was £55 billed quarterly. The lease expiry date was on 4 October 2076. Considering the 51 years unexpired we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus legals.