Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Broughton Astley. Inevitably, the length of lease left reduces as time goes by. This may slip by relatively unnoticed when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Broughton Astley have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give due consideration before delaying your Broughton Astley lease extension. Holding off the cost now simply increases the price you will eventually incur to extend your lease
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property 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. |
| 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; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Broughton Astley can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Broughton Astley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Luke, came very near to the 80-year mark with the lease on his studio flat in Broughton Astley. Having bought his flat twenty years previously, the length of the lease was of little interest. As luck would have it, he realised he needed to take action soon on a lease extension. Luke was able to extend his lease just under the wire in May. Luke and the landlord subsequently agreed on a premium of £6,000 . If the lease had gone to less than 80 years, the figure would have become more costly by at least £900.
Mr and Mrs. M Anderson took over the lease of a one bedroom flat in Broughton Astley in June 1999. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical homes in Broughton Astley with a long lease were valued about £189,000. The average ground rent payable was £55 billed every twelve months. The lease lapsed on 28 May 2079. Having 53 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.
Last Spring we were called by Mrs W Kelly , who was assigned a lease of a one bedroom flat in Broughton Astley in October 2002. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar homes in Broughton Astley with 100 year plus lease were worth £290,000. The average ground rent payable was £45 collected quarterly. The lease expired in 2099. Having 73 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.