There is no doubt about it a leasehold flat or house in Broughton Astley is a wasting asset as a result of the shortening lease. Where the lease has, more than 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Broughton Astley will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Broughton Astley with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Broughton Astley 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 conveyancer we work with provide it.
Dylan owned a studio apartment in Broughton Astley on the market with a lease of a few days over 72 years left. Dylan on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert legal guidance and secured satisfactory deal informally and sell the property.
Mr and Mrs. E Ward owned a basement flat in Broughton Astley in April 2008. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Broughton Astley with an extended lease were in the region of £200,000. The average amount of ground rent was £50 invoiced per annum. The lease ended in 2102. Taking into account 77 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Last Summer we were contacted by Dr Y Murphy , who bought a first floor apartment in Broughton Astley in November 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Similar properties in Broughton Astley with an extended lease were valued around £260,200. The average amount of ground rent was £65 billed annually. The lease elapsed on 18 October 2091. Having 66 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 not including fees.