Chances are that where you own a flat in Broseley you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
Retaining our service will provide you better control over the value of your Broseley leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the landlord of her purpose-built flat in Broseley, Freya started the lease extension process just as the lease was nearing the all-important eighty-year threshold. The transaction was finalised in March 2012. The freeholder’s charges were negotiated to a tad over six hundred GBP.
Dr Luca Gray acquired a purpose-built flat in Broseley in March 1996. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative residencies in Broseley with a long lease were valued around £255,000. The average ground rent payable was £50 collected quarterly. The lease lapsed on 1 September 2096. Taking into account 70 years outstanding we calculated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 not including expenses.
In 2013 we were contacted by Mr and Mrs. A James who, having was assigned a lease of a garden apartment in Broseley in February 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar premises in Broseley with an extended lease were worth £246,800. The average amount of ground rent was £60 billed annually. The lease came to a finish in 2076. Having 50 years left we approximated the premium to the landlord to extend the lease to be within £44,700 and £51,600 plus fees.