On the balance of probabilities if you own a flat in Bromyard you actually own a long leasehold interest over your property
Leasehold properties in Bromyard with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Bromyard can be a difficult process. We recommend you secure professional help from a lawyer 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 procuring Bromyard lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jayden, started to get close to the eighty-year mark with the lease on his studio flat in Bromyard. In buying his home twenty years ago, the lease term was of minimal significance. Fortunately, it dawned on him that he would soon be paying way over the odds for a lease extension. Jayden was able to extend his lease at the eleventh hour in May. Jayden and the freeholder via the management company eventually settled on the final figure of £5,500 . If he not met the deadline, the sum would have escalated by a minimum £1,050.
Last Autumn we were approach by Dr Jasper Murphy , who took over the lease of a ground floor apartment in Bromyard in January 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Identical flats in Bromyard with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 collected every twelve months. The lease finished on 13 August 2082. Given that there were 57 years remaining we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.
In 2013 we were contacted by Mr and Mrs. R Cox who, having owned a basement flat in Bromyard in October 2003. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative residencies in Bromyard with 100 year plus lease were valued about £200,000. The average amount of ground rent was £50 billed yearly. The lease ended in 2102. Given that there were 77 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.