Broughton Astley residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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.
Subsequent to unsuccessful correspondence with the freeholder of her two bedroom flat in Broughton Astley, Jordan started the lease extension process as the 80 year deadline was fast nearing. The legal work was concluded in September 2010. The landlord’s costs were kept to an absolute minimum.
Last month we were called by Mr S Ali , who completed a garden flat in Broughton Astley in April 1997. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Identical properties in Broughton Astley with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 billed yearly. The lease expired on 6 September 2093. Given that there were 67 years left we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus expenses.
Mr and Mrs. D Carter moved into a basement apartment in Broughton Astley in January 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparative homes in Broughton Astley with an extended lease were worth £206,200. The mid-range amount of ground rent was £55 invoiced yearly. The lease lapsed in 2082. Having 56 years remaining we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.