For anyone whose Broughton Astley 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 obtain a lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Santander | |
| The Mortgage Works |
Engaging our service gives you increased control over the value of your Broughton Astley leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her leasehold apartment in Broughton Astley, Phoebe initiated the lease extension process as the 80 year mark was quickly approaching. The transaction was concluded in November 2011. The freeholder’s costs were negotiated to about 500 pounds.
Last year we were called by Mr and Mrs. D Wood , who purchased a one bedroom flat in Broughton Astley in September 2001. The question was if we could approximate the premium could be for a 90 year lease extension. Identical premises in Broughton Astley with an extended lease were in the region of £225,800. The mid-range ground rent payable was £60 billed per annum. The lease elapsed on 5 April 2086. Given that there were 60 years remaining we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 plus expenses.
Last March we were called by Mr and Mrs. V White , who acquired a purpose-built apartment in Broughton Astley in March 2006. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Broughton Astley with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ended in 2106. Taking into account 80 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.