The closer a domestic lease in Bromham gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Bromham will qualify for this right; however a conveyancing solicitor should be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Bromham with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bromham can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Bromham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Aarav, started to get close to the eighty-year mark with the lease on his one bedroom flat in Bromham. Having purchased his flat 18 years ago, the length of the lease was of little relevance. As luck would have it, he noticed he needed to take action soon on a lease extension. Aarav arranged for a lease extension just ahead of time in May. Aarav and the landlord subsequently agreed on an amount of £5,000 . If he not met the deadline, the price would have increased by at least £1,075.
Last Spring we were contacted by Dr Jonathan Wright , who completed a one bedroom flat in Bromham in March 1996. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Identical homes in Bromham with a long lease were valued about £267,600. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed in 2093. Given that there were 67 years remaining we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of expenses.
Mr and Mrs. G Michel acquired a purpose-built apartment in Bromham in May 2005. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable premises in Bromham with an extended lease were valued around £206,200. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed on 9 November 2082. Having 56 years as a residual term we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including professional charges.