For those whose Broseley flat is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with undertake Broseley 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 conveyancing solicitor we work with provide it.
Half a year ago Riley, came perilously close to the eighty-year mark with the lease on his ground floor apartment in Broseley. In buying his home 19 years previously, the unexpired term was of no importance. As luck would have it, he realised he needed to take action soon on Extending the lease. Riley was able to extend his lease at the eleventh hour in January. Riley and the landlord who owned the flat above subsequently agreed on sum of £5,500 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,050.
Ms Jodie Morris completed a recently refurbished flat in Broseley in July 2004. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparable premises in Broseley with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 collected annually. The lease lapsed in 2098. Considering the 73 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
Last Summer we were called by Mr M Hall , who moved into a garden apartment in Broseley in October 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Broseley with a long lease were in the region of £264,000. The average amount of ground rent was £60 billed monthly. The lease concluded on 1 October 2078. Considering the 53 years left we calculated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of costs.