With a domestic leasehold premises in Broughton Astley, you are actually buying a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years left. Anyone in Broughton Astley with a lease approaching 81 years left should seriously consider extending it sooner than later. When the lease term has less than 80 years outstanding, under the current statute the freeholder can calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Broughton Astley with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Broughton Astley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Broughton Astley valuers.
Archie owned a studio flat in Broughton Astley being sold with a lease of a little over fifty eight years left. Archie on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Archie to exercise his statutory right. Archie procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were contacted by Ms A James who, having owned a recently refurbished flat in Broughton Astley in February 2008. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Broughton Astley with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 collected annually. The lease terminated on 24 September 2081. Having 55 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus professional charges.
Last month we were called by Dr D Ramírez , who was assigned a lease of a basement flat in Broughton Astley in May 2012. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Broughton Astley with 100 year plus lease were worth £295,000. The average ground rent payable was £50 billed annually. The lease finished in 2101. Taking into account 75 years remaining we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.