It’s a harsh certainty that a Broseley residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Broseley property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. Most flat owners in Broseley will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 Broseley can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 in-depth market knowledge procuring Broseley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Samuel owned a high value flat in Broseley on the market with a lease of a little over 59 years remaining. Samuel informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Samuel to invoke his statutory right. Samuel procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2010 we were called by Dr R Walker who, having bought a one bedroom apartment in Broseley in June 2004. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Similar homes in Broseley with an extended lease were in the region of £176,200. The average ground rent payable was £65 billed annually. The lease ended on 17 September 2082. Considering the 56 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 not including costs.
Mr R García was assigned a lease of a studio flat in Broseley in June 1996. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparative residencies in Broseley with a long lease were worth £242,600. The average amount of ground rent was £45 collected monthly. The lease lapsed on 3 May 2093. Having 67 years outstanding we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus legals.