On the balance of probabilities if you own a flat in Broughton Astley you actually own a long leasehold interest over your property
Leasehold premises in Broughton Astley with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 get guidance from a lawyer and surveyor with experience in this area.
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.
Following unsuccessful discussions with the freeholder of her two bedroom apartment in Broughton Astley, Molly commenced the lease extension process just as the lease was nearing the crucial eighty-year mark. The transaction was finalised in January 2010. The landlord’s charges were negotiated to slightly above 450 GBP.
Last Summer we were contacted by Dr Tyler Ricardo , who owned a one bedroom apartment in Broughton Astley in July 2009. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparative premises in Broughton Astley with 100 year plus lease were worth £295,000. The average ground rent payable was £50 invoiced annually. The lease lapsed on 4 May 2101. Having 75 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
In 2012 we were called by Mr and Mrs. D Michel who, having acquired a first floor flat in Broughton Astley in November 2002. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Broughton Astley with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease terminated in 2090. Taking into account 64 years left we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus expenses.