When it comes to domestic leasehold property in Bromley, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years remaining. Leasehold owners in Bromley with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When a lease has below 80 years remaining, under the current Act the landlord can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Bromley with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 Bromley can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
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 Bromley 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 unsuccessful negotiations with the freeholder of her two bedroom apartment in Bromley, Jasmine commenced the lease extension process as the eighty year deadline was fast approaching. The lease extension completed in August 2012. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were contacted by Ms T Jackson , who acquired a ground floor apartment in Bromley in February 2000. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar residencies in Bromley with a long lease were in the region of £210,600. The average amount of ground rent was £45 collected quarterly. The lease terminated in 2087. Given that there were 62 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Bromley residence is Ravensbourne Lodge 4 Highland Road in February 2013. the Tribunal held that the amount payable for the freehold was £22,268