Broughton Astley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Broughton Astley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Broughton Astley you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Broughton Astley with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Broughton Astley can be a difficult process. We recommend you procure professional help from a lawyer 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 a wealth of experience procuring 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.
After lengthy discussions with the freeholder of her leasehold apartment in Broughton Astley, Amelia commenced the lease extension process as the eighty year mark was quickly coming. The transaction was finalised in February 2011. The freeholder’s fees were negotiated to slightly above 700 pounds.
Last month we were contacted by Mr and Mrs. Y Petit , who purchased a purpose-built apartment in Broughton Astley in January 1997. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Similar properties in Broughton Astley with a long lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease ran out on 13 August 2090. Taking into account 65 years remaining we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including fees.
Last Christmas we were phoned by Dr L Adams , who acquired a ground floor apartment in Broughton Astley in October 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar flats in Broughton Astley with 100 year plus lease were in the region of £191,400. The average ground rent payable was £55 invoiced quarterly. The lease terminated in 2079. Considering the 54 years left we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of fees.