Bromyard leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Bromyard residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bromyard you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Bromyard lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Oscar owned a high value apartment in Bromyard being sold with a lease of a little over 59 years unexpired. Oscar on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oscar to invoke his statutory right. Oscar procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.
Last year we were phoned by Dr Laura Gray , who completed a ground floor flat in Bromyard in November 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical homes in Bromyard with an extended lease were in the region of £250,400. The average ground rent payable was £65 billed yearly. The lease ended on 20 August 2089. Considering the 64 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of fees.
Mrs D Harris moved into a garden apartment in Bromyard in March 2007. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative premises in Bromyard with a long lease were worth £184,000. The mid-range amount of ground rent was £55 collected yearly. The lease ran out on 13 April 2078. Considering the 53 years outstanding we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus fees.