Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Bromham. Inevitably, the length of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Bromham have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. You should give due consideration before delaying your Bromham lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Bromham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor 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 a wealth of experience 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.
Off the back of lengthy discussions with the landlord of her two bedroom apartment in Bromham, Rosie initiated the lease extension process just as her lease was nearing the critical 80-year mark. The legal work was concluded in August 2012. The landlord’s costs were kept to an absolute minimum.
Last Summer we were called by Mr and Mrs. P Khan , who purchased a one bedroom apartment in Bromham in November 2006. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Bromham with 100 year plus lease were worth £198,800. The average amount of ground rent was £55 collected per annum. The lease elapsed on 10 October 2080. Having 55 years remaining we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of expenses.
In 2009 we were e-mailed by Mr F Rodríguez who, having bought a basement flat in Bromham in July 2007. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Bromham with a long lease were valued around £300,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease terminated on 15 May 2100. Considering the 75 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.