Chances are that where you own a flat in Bromyard you actually own a long leasehold interest over your property
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| 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. |
Lease extensions in Bromyard can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
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.
Subsequent to protracted discussions with the freeholder of her studio apartment in Bromyard, Eleanor initiated the lease extension process as the 80 year threshold was rapidly coming. The transaction was concluded in March 2010. The landlord’s costs were restricted to a tad over 700 GBP.
In 2009 we were phoned by Mr Jacob Carter who, having took over the lease of a purpose-built flat in Bromyard in January 2010. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable properties in Bromyard with a long lease were valued about £166,800. The average ground rent payable was £50 billed quarterly. The lease expired on 26 March 2076. Given that there were 50 years left we approximated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus professional charges.
Last Summer we were approach by Ms K Ramírez , who bought a ground floor flat in Bromyard in February 1999. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative flats in Bromyard with a long lease were valued around £280,000. The average ground rent payable was £45 collected annually. The lease terminated on 27 May 2096. Considering the 70 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.