There is no doubt about it a leasehold property in Bromley is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 99 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Bromley will meet the qualifying criteria; that being said a conveyancer should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Bromley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Noah owned a high value flat in Bromley being marketed with a lease of a few days over 61 years unexpired. Noah informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Noah to invoke his statutory right. Noah procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2013 we were e-mailed by Mr Luca Morgan who, having took over the lease of a one bedroom flat in Bromley in August 2000. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical homes in Bromley with 100 year plus lease were valued around £280,000. The average ground rent payable was £55 collected annually. The lease lapsed in 2103. Given that there were 78 years outstanding we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Bromley property is Ravensbourne Lodge 4 Highland Road in February 2013. the Tribunal held that the amount payable for the freehold was £22,268